Japan PRDCs stage a comeback on yen depreciation

The PRDC market has been reborn after a five-year hiatus since the financial crisis. What is driving the market this time and have dealers devised a way to hedge some of the risk that proved so toxic in 2008?


When it comes to exotic risk in Japan the culinary delicacy fugu leaps to mind – the puffer fish treat must be carefully prepared by a skilled chef to remove toxic parts which are deadly to humans. Power reverse dual currency (PRDC) notes, a mainstay of the Japan structured products market between 2001 and 2008, were the banking equivalent of this piscine risk, causing multi-billion dollar losses at the height of the crisis. The product has now returned in large sizes but dealers say they have

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here