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. |
|
Investopedia explains '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. |
Related Definitions
Articles Of Interest
-
Are Structured Retail Products Too Good To Be True?
Spot a rotten investment before you get seduced by its sweet promise of profit. -
Investing In Securitized Products
Securitized assets are customizable and have a wide range of yields, making them an attractive asset class. -
An Introduction To Structured Products
Learn a simple way to bring the benefits of derivatives into your portfolio. -
Structured Notes: Buyer Beware!
At first glance, this product looks like the answer to investors' prayers. In reality, it's just too good to be true. -
What is securitization?
Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security.A typical example of securitization is a mortgage-backed ... -
Basic Investment Objectives
You might know about different asset types, but do you know how each type contributes to a particular goal? -
Exploring The Current Account In The Balance Of Payments
Learn how a country's current account balance reflects the country's economic health. -
Understanding And Playing The Dow Jones Industrial Average
Learn strategies for investing in this price-weighted index and how to interpret its movements. -
Writing A Covered Call
Writing an option is the process of selling to another investor the right, but not the obligation, to buy or sell a stock at a given price in the near future. It can also be referred to as shorting ... -
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity.
Free Annual Reports