It stands for fixed-coupon note; a note that provides the investor with fixed coupon payment over the course of its life, typically ranging from two to five years. The stable income is a source of protection against a low to moderate decline in the reference rate (such as an index, ETF, etc.) over the period defined by the the note’s tenor (term).

The note suits investors with a neutral or slightly bearish view of the reference asset over a specific term corresponding to the note’s tenor. It provides downside protection for short to medium term investments (exposure to equity market risk).

This note belongs to the broader category of yield enhancement notes.