structured notes

structured notes
The broad, regulatory definition of this term is debt securities whose cash flow characteristics ( coupon, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. For example, since the early 1990s, U.S. government agencies have been issuing unsecured bonds and notes with coupons that are fixed for a predetermined time and then increase or step up to a higher amount if the securities are not called. Embedded forwards and options in the structure of notes allow underwriters to create an unlimited number of risk/reward profiles and to customize risk characteristics to fit an investor's desired risk exposure. By this broad definition, structured notes include all CMOs. However, the term also includes a variety of other securities that are not necessarily mortgage related. In fact, many structured notes are not mortgage backed and some definitions of this term explicitly exclude mortgage-backed securities.
Sometimes called hybrid securities. American Banker Glossary

Financial and business terms. 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Structured Notes — различные виды так называемых структурированных облигаций, купонная ставка или сумма выплаты основного долга по которым привязаны к определенному индексу …   Ипотека. Словарь терминов

  • Structured finance — is a broad term used to describe a sector of finance that was created to help transfer risk using complex legal and corporate entities.tructureecuritizationSecuritization is the method which participants of structured finance utilize to create… …   Wikipedia

  • Structured programming — can be seen as a subset or subdiscipline of procedural programming, one of the major programming paradigms. It is most famous for removing or reducing reliance on the GOTO statement.Historically, several different structuring techniques or… …   Wikipedia

  • Structured query language — SQL Apparu en 1974 Auteur …   Wikipédia en Français

  • Structured product — A structured product is generally a pre packaged investment strategy which is based on derivatives, such as a single security, a basket of securities, options, indices, commodities, debt issuances and/or foreign currencies, and to a lesser extent …   Wikipedia

  • Structured sale — A structured sale is a special type of installment sale pursuant to the Internal Revenue Code. [usc|26|453.] Installment sales permit sellers to defer recognition of gains on the sale of a business or real estate to the tax year in which the… …   Wikipedia

  • Structured Query Language — SQL Apparu en 1974 Auteur Donald D. Chamberlin et Raymond F. Boyce Développeur IBM Dernière version stabl …   Wikipédia en Français

  • Structured investment vehicle — A structured investment vehicle (SIV) was a type of fund in the shadow banking system from the mid 1980 s until late 2008. The strategy of these funds was to borrow money by issuing short term securities at low interest and then lends that money… …   Wikipedia

  • Structured Investment Vehicle — Als Conduit wird eine Refinanzierungsstruktur bezeichnet, bei der mittels einer Zweckgesellschaft (engl.: SPV) Wertpapiere wie z. B. ABS oder CDO oder andere Forderungen wie z. B. Kredite oder Forderungen aus Lieferungen und Leistungen von extern …   Deutsch Wikipedia

  • Principal at risk notes — What are Principal at Risk Notes? Ending Value Higher Benefits of PARs * Enhanced/Leveraged Return ** Upside: Receive a return that is enhanced by leverage so that it will be higher than the actually return, subject to any caps. ** Downside:… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”