Structured notes have become increasingly popular amongst the investment community at large. This is mainly due to the fact that it allows investors to place investments into a choice of asset classes, determine their duration as well as the level of protection on the initial capital being invested.

Popular structures for these notes include Interest Rate Linked Deposits and Equity or Index Linked Deposits

Interest Rate Linked Deposits
Interest Rate Linked Deposits are an appealing ixed income proposition that offer a potentially higher rate than the market return - depending on the position of LIBOR during an agreed period.

Equity or Index Linked Deposits
Equity or Index Linked Deposits on the other hand are linked to the performance of an equity index such as the S&P500 / FTSE100 / EuroXX50 or even to a pre-selected basket of shares or a combination thereof

These products can be designed to it a particular strategy hence the underlying / duration and pay off methods can be tailored to it into the investor’s strategy.