A new direction

Quanto inverse floating rate notes have been enormously successful among Taiwanese investors over the past year, but with some domestic funds nearing their limits on these investments, banks have begun testing the water with new products. Nick Sawyer reports

Taiwan’s structured note market has been a one-product show over the past year. Faced with domestic bond yields that have tumbled to record lows, institutional investors – and particularly the country’s fast-growing bond funds – have looked beyond traditional fixed-rate bonds to inverse floaters to meet their performance targets. And with the US dollar yield curve offering the most value