Japanese PRDC investors face years without a coupon

The continued slashing of interest rates in both the US and Australia in December has dealt Japanese power reverse dual currency (PRDC) investors more bad news. The products are now unlikely to pay coupons for the next few years or be called by issuers, as the yen continues to appreciate against the US and Australian dollar.

The Reserve Bank of Australia cut its interest rate to 4.25% from 5.25% on December 2 last year, while the US Federal Reserve slashed rates to between 0% and 0.25% on

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