What Are Autocallable Notes?

What Are Autocallable Notes?

AutoCallable Notes are short-term market-linked investments offering an above-market coupon if automatically matured prior to the scheduled maturity date. The product is automatically matured (“auto-called”) if the reference asset is at or above its initial level on a predetermined observation date.

What is an Autocallable?

An autocallable is a popular structured product that pays a high coupon if the underlying – typically equity indexes or single stocks – passes an upside barrier, at which point it automatically matures and the investor's principal is returned.

Are structured notes good investments?

Its A Very Risky Investment

Certain structured notes are designed to be riskier investments, because they are oriented to have a higher potential payoff. However, most structured notes are designed to be risk-based because they offer two things—a measure of downside protection and some rate of return or participation.

Robert Thorne
Author

Robert Thorne

Robert Thorne covers electric vehicle innovations, autonomous driving systems, global mobility trends, and automotive engineering developments.