Banks pull out of PRDC market


LONDON – Losses and increasing hedging costs have forced many smaller firms out of the power-reverse dual currency (PRDC) business, say dealers, leaving a rump of major banks operating in the market.

One high-profile withdrawal was AIG’s financial products unit, which sold a $7 billion PRDC book in early 2009. The book was largely absorbed by Deutsche Bank. The bank did not respond to requests for comment on the matter.

Issuing and hedging PRDCs for Japanese investors provided dealers with

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services -, or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: