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Preferred term

structured notes  

Definition

  • Structured notes are a debt-based type of structured product, which the Securities and Exchange Commission (in rule 434) defines as securities whose cash flow characteristics depend upon one or more indices or that have embedded forwards or options or securities where an investor's investment return and the issuers payment obligations are contingent on, or highly sensitive to, changes in the value of underlying assets, indices, interest rates or cash flows. Those embedded components may be straightforward or may include exotic options; there is a wide variety of structured notes. [Source: Encyclopedia of Business in Today's World; Structured Notes]

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https://concepts.sagepub.com/social-science/concept/structured_notes

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