In finance, a range accrual is a type of derivative product very popular among structured-note investors. It is estimated that more than USD 160 billions of Range Accrual indexed on interest rates only have been sold to investors since 2004. It is one of the most popular non-vanilla financial derivatives. In essence the investor in a range accrual is betting that interest rates will stay within a predefined range.
Read more about Range Accrual: Payoff Description, Valuation and Risks, Market
Famous quotes containing the word range:
“The wider the range of possibilities we offer children, the more intense will be their motivations and the richer their experiences. We must widen the range of topics and goals, the types of situations we offer and their degree of structure, the kinds and combinations of resources and materials, and the possible interactions with things, peers, and adults.”
—Loris Malaguzzi (1920–1994)