Boosting dollar returns during euro strength
Background: An 'FX tarn' with conversion is a popular tool to boost the return on a US dollar deposit in a slightly bullish euro environment. By using this tool, the capital is redeemed as soon as one conditional coupon is paid. If the condition is never met, the holder gets the right but not the obligation to sell its US dollars against the euro at 1.00.
Problem: A European exporter is structurally long US dollars, and would like to earn an enhanced interest rate while still having the potential
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