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 Says:
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 for increasing the returns. Related Terms:
Bond
Exchange Traded Notes - ETN
Hybrid Security
Medium Term
Structured Finance
Structured Fund
Synthetic |