Low volatility boosts discrete knock-out sales Asia-wide
Dealers are seeing a shift away from target redemption products to discrete knock-outs across the broader Asia region
While discrete knock-out forwards have been in demand in Taiwan as a result of a regulator crackdown on target redemption forwards (Tarfs), foreign exchange dealers are also reporting a shift by Asian clients outside of Taiwan to discrete knock-out forwards due to continuing low volatility.
Tarf products have been a popular way for investors in Hong Kong, Singapore and Taiwan to gain enhanced yield by expressing a view on the movement of currency pairs. Currencies that have been popular due to
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