Structured note

A structured note is like a special kind of investment that is made up of two parts. Think of it like a sandwich, with the bread being the note and the filling being the investment.

The note part of the structured note is like a loan that someone buys from a bank. The bank promises to pay back the money they borrowed, plus extra money called interest, at a later time. But the note is not like a regular loan because it has special conditions.

The investment part of the structured note is where the fun comes in! It is like a recipe that says how the filling will be made. The filling is usually made up of different types of investments like stocks, bonds or currencies.

The special conditions of the note say how the filling will be mixed together. Sometimes it is mixed in a way that gives you more money if the investment goes up, but less if it goes down. Other times it might give you a guaranteed amount of money but with less potential for a big payoff.

So, the structured note is like a delicious sandwich that has a special bread that promises to pay back the money borrowed and a tasty filling that might give you a big reward, but always under certain conditions.