Structured Notes

These structured growth notes participate in the upside of equities and/or selected market indices while providing meaningful downside protection. Growth multipliers, for example, may deliver returns two or three times those of standard market participation. Many also include a buffer that absorbs losses up to a predetermined level (often 20-40%). An additional benefit is the call premium—a predefined return paid if the note is called early and the contract ends (often ranging from 40-80%). Using technical analysis, we systematically screen the market for underlying investments to fund the structured growth notes with the goal of getting them to be called, aiming to secure the most attractive returns for our clients.

Similar to growth notes, Principal-Protected Notes potentially offer full protection of the capital you invest. They are designed for investors who prioritize capital preservation. Typical structures include:

• Point-to-point multipliers of 1.3x–4.25x (or higher) linked to low-volatility / moderated indices, as well as to a stock or basket of stocks.
• Specialized calculation methods, such as removing the best performing month and summing the remaining eleven monthly returns each year and then applying a substantial participation multiplier (often 200-225%).
• At-the-money (ATM) digital payoffs that deliver a fixed total return—often 50–75% over five years—provided the underlying finishes flat or positive to any degree, which can potentially provide growth in an overall stagnant market environment.

These notes can generate positive returns in both rising and falling markets within a wide, pre-defined range. On the upside, investors typically receive a participation rate of 1.5x–4x (often uncapped). On the downside, absolute-return or reduced-loss features provide gains or limited losses down to a hard buffer or barrier (commonly 20–50%). For example, if the underlying stock or index rises, returns are amplified by the participation rate; if it falls, the investor still benefits down to the buffer or barrier limit. Beyond that point, the investor participates dollar-for-dollar in any further losses. This structure is especially useful when directional conviction is low, volatility is high, and returns stagnate or drop within a range.

Designed for delivering enhanced income, these notes pay periodic coupons (frequently 12–25% per annum, paid monthly) as long as the stock or index remains above a coupon barrier (often set 40–50% below the initial level). If the underlying falls below that barrier, no payment is made for the period. To offset this risk, many notes include a memory feature that recovers any missed coupons once the underlying rises back above the barrier. Just as with growth notes, we use our market expertise to select structures that maximize income potential while minimizing principal risk.

These notes combine 100% FDIC-insured principal protection (within applicable limits) with equity-linked upside. Actual structures may include shorter-term duration (18-month) offerings with capped 1x participation multipliers, as well as longer-term (5-year) notes featuring high uncapped multipliers (such as 4.25x) on moderated indices. They suit investors seeking federal deposit insurance together with market-linked growth potential and full principal protection.