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 variables of quantification, ‘something,’ ‘nothing,’ ‘everything,’ range over our whole ontology, whatever it may be; and we are convicted of a particular ontological presupposition if, and only if, the alleged presuppositum has to be reckoned among the entities over which our variables range in order to render one of our affirmations true.”
—Willard Van Orman Quine (b. 1908)