structured note

Structured note

A derivative investment that will change in value with movements of an underlying index; or a note whose issuer makes swap arrangements to alter its required cash flows.

Structured Note

A debt security attached to a derivative of any sort. The derivative may be an option on stock in the company issuing the note or a security that tracks some index. A structured note aims to gives both the holder and the issuer a great deal of flexibility; for this reason they are usually very complex. As a result they are marketed to investors thought to be "sophisticated."

structured note

A medium-term derivative debt security that has one or more special features such as an interest payment based on an equity index, a foreign exchange index, or a benchmark interest rate. Issuers of structured notes often hedge these securities with their own transactions in the derivatives market. Structured notes tend to be complex and are aimed primarily at sophisticated investors.