Down the corridor

Asset managers and private clients that have been investing in interest rate range accrual notes to boost portfolio returns are now exploring the use of credit-linked range accrual notes. John Ferry reports

Is it possible for investors to make a decent return from interest rate products when such rates, after adjustment for tax and inflation, are probably negative? Private bankers think so, and are pushing structured products in the US, Europe and Asia that generate above-average returns, given current economic conditions.

Private client investors have been especially keen to put their money into interest rate range accrual notes, sometimes called interest rate corridors, bankers say. These have