Structured Notes 101

Soft Protection may be a good option if you want to eliminate some of the negative return potential of an asset while potentially enhancing upside potential.

Catapult Notes can be an interesting way to produce a compelling rate of return if called early. Otherwise, potential payoffs "catapult" to generous enhanced upside.

Worst-of Structured Notes can increase return potential, but they come with some unique risks you should understand.

Structured Notes can be a powerful tool for managing client emotions while dialing in a personalized risk-reward profile. Cameron Dawson explains.

Structured Notes with a fixed coupon can be a good way to add reliable investment income potential. Learn the basics.

Contingent Income Notes are a unique variation on the vanilla Income Note because periodic coupon payments are only paid when an underlier is above the coupon barrier level on specific observation dates. Some scenarios are described below. This Note type may be ideal for investors wishing to express a mildly bullish or even slightly bearish view on an underlying index.

We created the below infographic to explain what a structured note is, describing two main types and how to implement them in a portfolio.

Soft Protection may be a good option if you want to decrease an asset’s potential for a negative return while also potentially enhancing the asset’s upside. It's most effective in positive scenarios and common negative scenarios.

If you’re interested in generating a potentially high yielding income stream, then Contingent Income Notes, one type of Structured Note payoff, can convert equity returns into pure income across a range of market environments

Hard Protection may be a good option if you want to eliminate or significantly decrease an asset’s negative return in moderate to severely volatile market conditions. It's most effective in negative scenarios with significant volatility.

Capped Growth may be a good option if you want to noticeably increase an asset’s upside return potential, up to a cap. It's most effective in mild to moderate positive scenarios.

Uncapped Growth Notes are one of the most vanilla forms of Structured Notes. Often they are called “Enhanced” Notes or something to that effect. Because they have the potential to retain, even enhance (or “multiply”), an investment’s upside potential, they can be...