Retail Note


DEFINITION of 'Retail Note'

A medium-term, subordinated, unsecured debt obligation usually issued by a multinational corporation. Retail notes can be purchased directly from the issuer at par in $1,000 increments with no accrued interest or added markups. They will usually pay a fixed interest rate for nine months or more (after that, the rate may vary). Retail notes may be callable and can be redeemed at the option of the issuer or holder. Most retail notes also feature a survivor's option.

Also known as "retail bonds".


Retail notes may qualify for tax-deferred status on their own. They are also eligible IRA investments. In addition to purchasing them from the issuer, you can also purchase them from a financial intermediary such as a broker.

  1. Par Value

    The face value of a bond. Par value for a share refers to the ...
  2. Unsecured Note

    A loan that is not secured by the issuer's assets. Unsecured ...
  3. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  4. Accrued Interest

    1. A term used to describe an accrual accounting method when ...
  5. Callable Bond

    A bond that can be redeemed by the issuer prior to its maturity. ...
  6. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at ...
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