Understanding How An Income Structured Note Works

Relative to conventional corporate bonds, which generally pay semiannually, Income Notes can be constructed to better match unique investment income needs, hence why they're called a Structured Note. Coupons can be fixed at issuance or they can be contingent, which we will cover in another video. When an Income Note matures, if the underliers price level breaches the principal protection level, investors are exposed to either all or part of the loss of the underlier. This is determined by whether or not the Note has hard or soft protection.
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Structured Notes can be a good investment if you understand how they work. At times, Structured Notes can have complex features and opaque fees. Halo helps explain risks and considerations investors should know to help make these investments more accessible.
See Halo’s Structured Notes 101 for the basics, including what are Structured Notes, where Structured Notes fit in a portfolio, and getting started with Structured Notes: haloinvesting....
This infographic is another good Structured Note primer:
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To go deeper on how Structured Notes work, this guide can be a good Structured Note primer on how they’re made. It also explains different types of Structured Notes and what market environments they could be appropriate for:
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For more on protective investing, check out the Halo Journal: journal.haloin...
To get started with Halo and Structured Notes visit haloinvesting.....
Content and any tools discussed are provided for educational and information purposes only. Halo Investing makes no investment recommendations and does not provide financial, tax, or legal advice. Any structured product or financial security discussed is for illustrative purposes only and are not intended to portray a recommendation to buy or sell a particular product or service.
US173/1.1/2401