Japanese investors exit PRDC notes

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A significant number of Japanese investors that might have been locked into close to zero-coupon payouts for the next 30 years due to their investments in Bermudan multi-callable power-reverse dual-currency (PRDC) notes have managed to exit their positions, as dealers have been forced to call the notes.

The development follows a sustained rally by the dollar against the yen last year - most notably between September and mid-November. This has caught out several dealers, along with hedge funds

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