In FY 2006, Fukuoka Prefecture floated 30 billion yen worth of structured bonds whose premiums were linked to the exchange rate. They are structured in such a way that if the yen appreciates past 80-90 to the dollar, the premiums would rise by 4-5 times. If the current yen appreciation continues, the prefecture’s obligations could rise by 1.36 billion yen a year.
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- High Yen Could Punish Fukuoka Prefecture’s Structured Bonds
High Yen Could Punish Fukuoka Prefecture’s Structured Bonds
- Published: Oct 27, 2011 / Last Updated: Oct 27, 2011
