The Bank of Japan's material describes this bond as one with yen-denominated redemption of principal and foreign-currency coupons. It calls a bond that embeds several coupon swaps to give a high coupon a power reverse dual (PRD) note. The coupon rate of a PRD note changes with the exchange rate on each interest payment date.
Reverse dual currency bond
- Japanese
- リバースデュアル債
- Last reviewed
- October 4, 2026
This is a draft, shown for review before publication.
A reverse dual currency bond is a bond whose principal is redeemed in yen and whose coupon is denominated in a foreign currency. A bond that embeds coupon swaps to raise the coupon is, in the Bank of Japan's material, the form called a PRD note.