Why autocalls become attractive in a low rate environment
As the Fed joins in with other central banks, cutting rates, investors need to adjust to the new norm. Lower for longer has been a theme since the financial crisis, and there seems to be no prospect of rates increasing back to pre-crisis levels. Investors need to consider current investment opportunities in the present state. The past is no longer a reference point. Referring to coupons and returns that were possible is futile.
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