Structured Products

Principal-Protected Note

Definition

What is Principal-Protected Note?

A structured debt instrument designed to return some or all principal at maturity, subject to issuer credit and terms.

Example in practice

The note protects 100% of principal at maturity but caps equity upside.

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An investment combining debt and derivatives to create a defined payoff.

A structured note whose principal may be reduced if specified market conditions occur.

A structured note that redeems early if the underlying meets specified conditions on observation dates.

A statistical measure tracking the performance of a defined group of securities or assets.

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