Offbeat Offerings: Equity Index-Linked Notes
by Cara Scatizzi
Equity index-linked notes are hybrid investment vehiclesneither a true stock, nor a true bond, but designed to capture certain investment characteristics of each. They are a form of what has been termed structured products, which typically are issued by investment banking firms.
In a structured product, the payoff typically is based on the price appreciation of an underlying stock index or other speculative asset. Many structured products are marketed as providing some upside potential of the underlying asset, while limiting downside losses.
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