Dictionary of Banking Terms: Principal Exchange Rate Linked Security (PERL)
Principal Exchange Rate Linked Security (PERL)
bond paying semiannual interest, with a yield tied to foreign exchange rates. A reverse PERL is denominated in one currency, and pays interest in another, for example, a yen-denominated bond, paying interest in dollars. Investor's effective yield increases if the dollar appreciates against the yen, decreases if the dollar falls in value.
