Dollarized Yield Curve Note (DYCN)

A medium-term note with an embedded rate differential swap agreement. The note's yield is a function of a specified non-dollar interest rate, but, all interest and principal payments are made in dollars at an exchange rate which may be set in advance (a quanto note) or set at the spot rate in effect on the payment date. If the payouts are not quanto-style, the dollar payouts are strictly for convenience in position and portfolio accounting.

Glossary * D