PERLS


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PERLS

Principal Exchange Rate Linked Security

A debt security denominated in U.S. dollars. The principal to be repaid on the security is determined by a particular exchange rate that exists between the dollar and a given currency at a certain time. For example, a company wishing to expand its overseas operations may buy this security in order to finance the expansion in the foreign currency while still linking it to the U.S. dollar. Companies use principal exchange-rate-linked securities to hedge against foreign exchange risk.

PERLS

References in periodicals archive ?
PERLS VI that will be qualified as tier-1 capital were issued in last month after the APRA compelled CBA to dump a minimum of two earlier start dates.
According to the bank, PERLS VI will pay quarterly floating rate distributions, which it expects to be fully-franked and non-cumulative.