Serving the Quantitative Finance Community
One-touch interest rate products
One-touch options, wherein a payout is made subject to an index hitting a certain value anytime during a certain period (with say daily observations) are very popular in the Fx world. But why are they not popular in the interest rate world i.e. why dont we have products that pay x% subject to LIBOR fixing through a particular index based on daily fixings as opposed to fixings on coupon dates
One-touch interest rate products
Range Accrual Swaps/Notes are pretty popular on interest rate side as well - though they actually do not contain "One touch" (American Binary options) but behaviour is very similar to what you have mentioned - every day LIBOR remains in a particular range they pay X else Y. Essentially consists of series of European Digital Options with daily expiry upto maturity of the note/swap.