A category of bond market tools which represent various tranches of interest rate or equity-linked instruments issued at the same time. With such notes, the return to the bear note is the mirror equivalent of the return to the bull note, providing whereby an offsetting mechanism in terms of return and restraining movement of the underlying rate.

The bear note is particularly of use in case the underlying experiences a fall or the rate structure undergoes an increase over a range of underlying values. In contrast, the bull note is favorable in an environment of rising prices and falling rates. If the complementary tranches are arranged such that the gain from one type is equal to the loss from another, an issuing entity would be hedged against market risks.