A reversal of power


What once proved a ‘fail safe’ bet has come back to haunt investors in Japanese power reverse dual currency (PRDC) notes. Betting the Japanese yen would not appreciate as much as the forwards implied against higher-yielding foreign currencies such as the US dollar and Australian dollar, the notes offered high returns for what seemed to be a relatively low risk.

In their simplest form, PRDC notes allow investors – traditionally hampered by low domestic interest rates in Japan – to benefit from hi

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