Serving the Quantitative Finance Community
Rate + Credit-linked products
What do people on this forum think about the potential for structured products linking rates and credit (e.g. range accrual coupon linked to interest rates with the principal linked to a basket of credits). Is this something that many banks have already managed to sell or is it a case of the twain shall never meet?Rgds
Rate + Credit-linked products
rate/credit hybrids are not that uncommon.one recent example: a bond that takes credit risk in the coupons only, with the capital guaranteed.