Structured Note


DEFINITION of 'Structured Note'

A debt obligation that also contains an embedded derivative component with characteristics that adjust the security's risk/return profile. The return performance of a structured note will track that of the underlying debt obligation and the derivative embedded within it.

BREAKING DOWN 'Structured Note'

A structured note is a hybrid security that attempts to change its profile by including additional modifying structures. A simple example would be a five-year bond tied together with an option contract. This structure would work to increase the bond's returns.

  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Hybrid Security

    A security that combines two or more different financial instruments. ...
  3. Medium Term

    An asset holding period or investment horizon that is intermediate ...
  4. Structured Finance

    A service that generally involves highly complex financial transactions ...
  5. Synthetic

    A financial instrument that is created artificially by simulating ...
  6. Index Amortizing Note - IAN

    A type of structured note or debt obligation where principal ...
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