The Advantages of Structured Notes
The Many Advantages Of A Structured Note
NB: Due Deligence Required – Read The Small Print!
Structured products provide investors with any risk profile and in any market scenario with an appropriate repayment profile that makes satisfactory yields possible in growing, sinking or sideways-moving markets. Structured product risk can be closely controlled. Solutions with capital protection suit risk-averse investors, while investors looking for high yields invest in leveraged products.
What’s important is that investors receive qualified advice in selecting an appropriate risk profile and that they have a clear understanding of how the product of their choice functions.
Another investor advantage of structured products is easier access to new markets that in the past were open only to institutional investors, such as raw materials or growing economies. That’s why by any measure, structured products are an innovative alternative to traditional forms of investment such as stocks and bonds.
Notes can be structured around any derivative relating to any market in just about any combination (involving numerous other key factors that are 100% customisable) you might realistically require. That’s flexibility for you.
A Note Is A Legal Agreement
A Structured Note is called a “Note” because it is an IOU note from the issuing bank to you. It frames a given agreement that the bank will pay you a return that is directly proportional to the satisfaction of a set of given market-related criteria. That payment will come either in regular intervals during the course of the Note’s duration, or only when it comes to maturity and expires.
Avoid The Volitility Of The Stock Market
Many professional investors are finding that the benefits of investing in developer loan notes are too attractive to ignore. The high rate of fixed interest paid gives them a huge advantage over the lower and fluctuating yields paid by way of dividends in the stock market. With investment capital guaranteed, investors don’t suffer the volatility suffered by stock market investors.
Upside Exposure And A Downside Buffer
A Structured Note allows the purchaser to benefit when the markets move up AND simultaneously be protected when the markets move down; upside exposure and a downside buffer. On top of that attractive prospect comes the added bonus that a Note can be issued in virtually ANY market or combination of markets, so there’s plenty of choices.
Structured Notes - Some Recommendations
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