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Quantitative Finance · Glossary

What is Formosa bond?

Definition 9.11 Rates, Credit, XVA and Risk · Chapter 9 — Bermudans and Callables

A Formosa bond is a bond denominated in a foreign currency and issued and listed in Taiwan. From 2014 most dollar Formosas were long-dated (twenty or thirty years) and callable by the issuer, many with zero coupons, sold to Taiwanese life insurers.

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