Hello, everyone
I'm a newcomer to structured notes but not a quant (I hope I will be)
Nonetheless, I am often confused with the mechanics of offering structured products.
When one issuer issues structured products under Euro-MTN program, I was told that the issuer often enters into a swap to swap back the structured coupon to floating rate/fixed rate with an investment bank.
However, when it comes to callable structured products such as callable LIBOR range accrual notes, I'm not sure who has the right to redeem the note, the issuer or the investment bank or both?
And what factors will affect the call of callable structured notes?
Thanks for any comments and opinions.
I'm a newcomer to structured notes but not a quant (I hope I will be)
Nonetheless, I am often confused with the mechanics of offering structured products.
When one issuer issues structured products under Euro-MTN program, I was told that the issuer often enters into a swap to swap back the structured coupon to floating rate/fixed rate with an investment bank.
However, when it comes to callable structured products such as callable LIBOR range accrual notes, I'm not sure who has the right to redeem the note, the issuer or the investment bank or both?
And what factors will affect the call of callable structured notes?
Thanks for any comments and opinions.
