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Structured Products
Product Guide

Accelerator
An investment instrument which gives additional upside performance of the underlying asset. For example, if the underlying asset rises by 25%, the investor receives more than 25% on his investment

Bull Bear Note
An investment instrument which tracks the upside and inversely tracks the downside on the underlying asset. For example, if the underlying index rises or falls by 10%, the client will receive a return of 10% on his investment

Commodity Linked Note (CLN)
An investment instrument linked to the performance of a specific commodity or a basket of commodities

Constant Maturity Swap (CMS) Structure
An investment instrument based on the spread between different maturities along the swap curve. (i.e. the investor makes money either when the swap curve steepens or flattens, depending on the structure of the note)

Equity Linked Note (ELN)
An investment instrument linked to the performance of a specific equity or equity-based index.

FX Linked Note
An investment instrument linked to the performance of a specific exchange rate or a basket of exchange rates

Range Note
An investment instrument paying a regular coupon for the days the Libor/Euribor rate is within a certain range. This range may change quarterly, semi-annually, annually and so on.

Reverse Floater
An investment instrument which pays out a regular coupon. Generally the first period's coupon is fixed and thereafter the coupon steps up and is subtracted by the Libor/Euribor rate.

Reverse Convertible
An investment instrument generally linked to an underlying share. The note returns a coupon on certain periods and the capital is guaranteed so long as the share is above or within a certain range on expiry of the note. Otherwise the note holder receives a predetermined number of the underlying shares at maturity.

Reverse Tracker
An investment instrument which inversely tracks the performance of the underlying asset. For example if the underlying asset falls by 10%, the investor receives a 10% return on his investment.

Step Up
An investment instrument which pays out a regular coupon. This coupon increases on a regular basis which is predetermined, e.g. annually or on specified coupon dates.

Snowball Note
An investment instrument which is linked to interest rates such as Libor or Euribor. The instrument offers a return as follows:

YR 1: C%
YR 2: C% + Y2% – Libor/Euribor, with a floor of 0%
YR 3: C% + Y3% – Libor/Euribor, with a floor of 0%
YR 4: C% + Y4% – Libor/Euribor, with a floor of 0%
with Y2 < Y3 < Y4

Target Redemption Note
An investment instrument with a maximum coupon level (otherwise known as a trigger level/ target/ knockout). The note pays out a coupon on regular intervals. The coupon often has a Snowballing characteristic. If on any coupon payment date the sum of paid coupons equals or exceeds the trigger level, the note will be redeemed at 100% plus the difference between the trigger level and the coupons already received. It is important to note the maximum payout of this note is the trigger level. If this level is not reached until maturity, the note will be redeemed at 100% plus a coupon equal to the trigger level.

Trackers
An investment instrument which directly replicates the performance of an underlying asset.

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