Investopedia

Continue to Site »

Principal Exchange Rate Linked Security - PERL

Filed Under »
Dictionary Says

Definition of 'Principal Exchange Rate Linked Security - PERL'

A type of debt security that pays interest semiannually and has a yield that is linked to foreign exchange rates. PERLs are denominated in U.S. dollars, but their repayment is determined by the exchange rate between the dollar and a specific foreign currency within a certain time frame. Many companies will purchase PERLs as a means of hedging against foreign exchange risk.
Investopedia Says

Investopedia explains 'Principal Exchange Rate Linked Security - PERL'

A company wishing to expand into a foreign currency can safely do so via the purchase of PERLs. The PERLs allow for the currency to retain a link to the dollar. Reverse PERLs are denominated in one currency, but pay interest in another.

Articles Of Interest

  1.

    Hedge Against Exchange Rate Risk With Currency ETFs

    Currency moves are unpredictable and can have an adverse effect on portfolio returns. Find out how to protect yourself.

  2. 6 Factors That Influence Exchange Rates

    Find out how a currency's relative value reflects a country's economic health and impacts your investment returns.

  3. The Ins And Outs Of Corporate Eurobonds

    Corporate eurobonds simplify expansion for MNCs, though there are a few more hoops to jump through.

  4. Zero-Coupon Bond

    A zero-coupon bond or ‘no coupon’ bond is one that does not disburse regular interest payments. Instead, the investor buys the bond at a steep discount price; that is, at a price ...

  5. Hormel Transforming, But Valuation Already Ahead Of It

    Hormel is very well-run and has above-average growth prospects, but investors have already bid the shares up accordingly

  6. It's Still Miller Time In The Emerging Markets

    SABMiller is expensive, but the company's long-term growth potential in emerging markets is enormous.

  7. Financial Markets: Capital Vs. Money Markets

    Two commonly used components of the financial market are money markets and capital markets. Find out the similarities and differences between them.

  8. After Some Preening, American Eagle Could Fly Again

    Management has to reinvest in the business, but the market seems to be undervaluing American Eagle's cash flow prospects.

  9. Cost Improvements Are Good, But Hewlett-Packard Needs Revenue Growth

    Restructuring seems to be helping margins, but HP needs revenue growth to really turn around

  10. Ski-Doo IPO Raises $254 Million: Should You Buy?

    Read on and I'll look into if you should buy Ski-Doo's stock once it becomes available.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center