A structured note (and a type of range accumulation notes) that allows investors to particularly capitalize on their ability to forecast short-term rates. The accrual index ratio constructed during the short-term period is multiplied by the reference index rate plus a given spread (a number of basis points) on each reset date. The note’s rate will change with market rates, but an investor with a good forecasting ability can lock in a better rate over the life of the note.
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