Filter by Categories
Accounting
Banking

Finance




Auto-Callable Note


A structured note (a short-term market-linked product) that offers an above-market coupon if automatically called prior to the scheduled maturity date. The note is automatically matured (“autocalled”) if the reference asset is at or above its initial level on a predetermined observation date (also known as an auto-call date). If called, the holder will receive the note’s principal amount in addition to an above-market coupon. The auto-call possibility is checked on a schedule of preset observation dates (quarterly, semiannually, yearly). The note’s underlying reference asset can be an equity (single stock), an equity index, a commodity, a commodity index, or a foreign currency.

Auto-callable notes belong to the broader class of autocallable products which provide contingent downside protection (protection against downside barrier risk) along with enhanced yield (a coupon higher than that of a fixed income bond with a similar credit quality and maturity.



ABC
Finance, as a field of knowledge, is substantially wide-ranging and virtually encompasses everything in the realm of corporate finance, financial management, ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*