Banks are experiencing a surge of interest in foreign exchange-linked structured notes tracking Latin American currencies, as falling volatility encourages investors to intensify their search for yield.
“Most interest has been coming from high-net-worth individuals seeking higher yield in Brazil,” said a New-York based head of forex derivatives trading. “With volatility coming down and interest rate differentials still very wide there is interest in the carry trade.”
Thirty-day spot volatility i
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