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Thoughts and musings from my desk to you.
Structured Notes Deconstructed
bonds, stock marketWe occasionally see portfolios come in for review containing structured notes. There are a wide variety of them, so I will speak generally. Not everything I will say applies to all, but likely most.
A structured note is a bond from a brokerage firm or sponsor which represents an underlying derivative. Most often, this derivative is a set of option contracts. The underlying derivative is what sets the parameters of upside vs. downside and can make them seem like a viable proposition.
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