DOCSLIB.ORG

MGL Structured Note Programme Base Prospectus

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
MGL Structured Note Programme Base Prospectus BASE PROSPECTUS Dated 2 July 2021 MACQUARIE GROUP LIMITED (ABN 94 122 169 279) (incorporated with limited liability in the Commonwealth of Australia) STRUCTURED NOTE PROGRAMME Under this Structured Note Programme (the "Programme"), Macquarie Group Limited ("MGL") or such other issuer as may accede to the Programme and be specified in the applicable Final Terms (each an "Issuer") may from time to time issue direct, unsecured, unsubordinated and unconditional notes ("Notes"). Notes of any kind may be issued including but not limited to Notes relating to a specified index or a basket of indices ("Index Linked Notes"), a specified equity security or a basket of equity securities ("Equity Linked Notes"), a specified currency or a basket of currencies ("FX Linked Notes"), a specified commodity or a basket of commodities ("Commodity Linked Notes"), a specified fund or a basket of funds ("Fund Linked Notes") or the credit of a reference entity or a basket of reference entities ("Credit Linked Notes"). Notes may also bear interest. Each issue of Notes will be issued on the terms set out herein which are relevant to such Notes under "Terms and Conditions of the Notes" (the "Note Conditions", or "Conditions") on pages 127 to 177 (inclusive) and any applicable Additional Terms and Conditions on pages 236 to 425 (inclusive) (together with the Note Conditions, the "Base Conditions") and on such additional terms as will be set out in the applicable Final Terms (the "Final Terms"). The Notes may (but need not) be issued on a continuing basis to the initial dealer specified in the "General Description of the Programme" section (the "Initial Dealer") and any additional Dealer appointed under the Programme from time to time by the Issuer (each a "Dealer" and together the "Dealers"), which appointment may be for a specific issue or on an ongoing basis. References in this Base Prospectus to the "relevant Dealer" shall, in the case of an issue of Notes being (or intended to be) subscribed by more than one Dealer, be to all Dealers agreeing to subscribe for such Notes. The Notes may also be issued other than to a Dealer on terms as may be separately agreed in writing from time to time by the Issuer and such other person. In such circumstances, the applicable Final Terms will indicate that there will not be a Dealer in respect of the relevant Series of Notes. The maximum aggregate nominal amount of all Notes from time to time outstanding under the Programme will not exceed US$5,000,000,000 (or its equivalent in other currencies), subject to increase in accordance with the terms of the Fourth Amended and Restated Programme Agreement dated 2 July 2021 (the "Programme Agreement"). An investment in Notes issued under the Programme involves certain risks. For a discussion of these risks see "Risk Factors". This Base Prospectus has not been approved as a prospectus for the purposes of Regulation (EU) 2017/1129 (the "Prospectus Regulation") and, accordingly, no offer to the public may be made and no admission to trading may be applied for on any market in the European Economic Area ("EEA") designated as a regulated market for the purposes of the Prospectus Regulation. This Base Prospectus has not been approved as a prospectus for the purposes of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA") (the "UK Prospectus Regulation") and, accordingly, no offer to the public may be made and no admission to trading may be applied for on a United Kingdom regulated market for the purposes of Regulation (EU) No 600/2014 on markets in financial instruments as it forms part of domestic law by virtue of the EUWA ("UK MiFIR"). Notes may only be issued under this Programme in circumstances where no prospectus is required to be published under the Prospectus Regulation and the UK Prospectus Regulation (see "Subscription and Sale" below). The Initial Dealer has represented and agreed, and each further Dealer appointed under the Programme will represent and agree, that this Base Prospectus has not been registered and will not be registered as a prospectus with the Monetary Authority of Singapore (the "MAS"). Accordingly, the Initial Dealer has represented, warranted and agreed, and each further Dealer appointed under the Programme will be required to represent, warrant and agree, that it has not offered or sold any Notes or caused the Notes to be made the subject of an invitation for subscription or purchase and will not offer or sell any Notes or cause the Notes to be made the subject of an invitation for subscription or purchase, and has not circulated or distributed, nor will it circulate or distribute, this Base Prospectus or any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the Notes, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act (Chapter 289) of Singapore, as modified or amended from time to time (the "SFA")) pursuant to Section 274 of the SFA, (ii) to a relevant person (as defined in Section 275(2) of the SFA) pursuant to Section 275(1) of the SFA, or any person pursuant to Section 275(1A) of the SFA, and in accordance with the conditions specified in Section 275 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. Where the Notes are subscribed or purchased under Section 275 of the SFA by a relevant person which is: (i) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or (ii) a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor, securities or securities-based derivatives contracts (each term as defined in Section 2(1) of the SFA) of that corporation or the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the Notes pursuant to an offer made under Section 275 of the SFA except: (1) to an institutional investor or to a relevant person, or to any person arising from an offer referred to in Section 275(1A) or Section 276(4)(i)(B) of the SFA; (2) where no consideration is or will be given for the transfer; (3) where the transfer is by operation of law; (4) as specified in Section 276(7) of the SFA; or (5) as specified in Regulation 37A of the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations 2018 of Singapore. Any Notes offered to investors outside Singapore will be offered in compliance with the applicable laws and regulations of the jurisdiction in which such Notes are being offered. Application has been made to the Singapore Exchange Securities Trading Limited (the "SGX-ST") for permission to deal in and for the quotation of any Notes which are agreed at the time of issue thereof to be so listed on the SGX-ST. Such permission will be granted when such Notes have been admitted to the Official List of the SGX-ST. There is no guarantee that the application to the SGX-ST for the listing of Notes will be approved. The SGX-ST assumes no responsibility for the correctness of any of the statements or opinions ii expressed or reports contained in this Base Prospectus and the applicable Final Terms in relation to Notes listed on the SGX-ST. Admission to the Official List of the SGX-ST and quotation of any Notes on the SGX- ST is not to be taken as an indication of the merits of the Issuer, its subsidiaries, its associated companies or such Notes. Notes listed on another stock exchange and unlisted Notes may also be issued under the Programme. The Issuer, in relation to Notes which will be listed on the SGX-ST undertakes, confirms, and/or agrees that so long as any of the Notes are listed on the SGX-ST it will appoint and maintain a Singapore paying agent in the event that any of the Global Notes are exchanged for Notes in definitive form, and provide details of such exchange including all material information with respect to the delivery of the definitive Notes, including details of the Singapore paying agent by way of an announcement to the SGX-ST, for so long as the Notes are listed on the SGX-ST. NOTIFICATION UNDER SECTION 309B(1)(C) OF THE SFA: UNLESS OTHERWISE STATED IN THE FINAL TERMS OF THE NOTES IN RESPECT OF ANY NOTES, ALL NOTES ISSUED OR TO BE ISSUED UNDER THE PROGRAMME SHALL BE CAPITAL MARKETS PRODUCTS OTHER THAN PRESCRIBED CAPITAL MARKETS PRODUCTS (AS DEFINED IN THE SECURITIES AND FUTURES (CAPITAL MARKETS PRODUCTS) REGULATIONS 2018 OF SINGAPORE) AND SPECIFIED INVESTMENT PRODUCTS (AS DEFINED IN MAS NOTICE SFA 04-N12: NOTICE ON THE SALE OF INVESTMENT PRODUCTS AND MAS NOTICE FAA-N16: NOTICE ON RECOMMENDATIONS ON INVESTMENT PRODUCTS). The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or under any securities laws of any state or jurisdiction of the United States and may not be offered or sold in the United States or to, or for the account or the benefit of, U.S.
Load more

Recommended publications
  • Structured Notes, Which Have Embedded Derivatives, Some of Them Very Complex
    Structured note markets: products, participants and links to wholesale derivatives markets David Rule and Adrian Garratt, Sterling Markets Division, and Ole Rummel, Foreign Exchange Division, Bank of England Hedging and taking risk are the essence of financial markets. A relatively little known mechanism through which this occurs is the market in structured notes, which have embedded derivatives, some of them very complex. Understanding these instruments can be integral to understanding the underlying derivative markets. In some cases, dealers have used structured notes to bring greater balance to their market risk exposures, by transferring risk elsewhere, including to households, where the risk may be well diversified. But the positions arising from structured notes can sometimes leave dealers ‘the same way around’, potentially giving rise to ‘crowded trades’. In the past that has sometimes been associated with episodes of market stress if the markets proved less liquid than normal when faced with lots of traders exiting at the same time. FOR CENTRAL BANKS, understanding how the modern For issuers, structured notes can be a way of buying financial system fits together is a necessary options to hedge risks in their business. Most, foundation for making sense of market developments, however, swap the cash flows due on the notes with a for understanding how to interpret changes in asset dealer for a more straightforward set of obligations. prices and, therefore, for identifying possible threats In economic terms, the dealer then holds the to stability and comprehending the dynamics of embedded options. Sometimes they may hedge crises. Derivatives are an integral part of this, used existing exposures taken elsewhere in a dealer’s widely for the management of market, credit and business.
    [Show full text]
  • Structured Note Programme Base Prospectus Dated 24 March 2016
    Structured Note Programme Base Prospectus dated 24 March 2016 CITIGROUP GLOBAL MARKETS HOLDINGS INC. (a corporation duly incorporated and existing under the laws of the State of New York) the issuer under the Citi U.S.$10,000,000,000 Global Structured Note Programme Notes issued by Citigroup Global Markets Holdings Inc. will be unconditionally and irrevocably guaranteed by CITIGROUP INC. (incorporated in Delaware) Under the Citi U.S.$10,000,000,000 Global Structured Note Programme (the Programme) described in this Base Prospectus, Citigroup Global Markets Holdings Inc. (CGMHI or the Issuer) may from time to time issue Notes, subject to compliance with all relevant laws, regulations and directives. The aggregate principal amount of securities outstanding under the Programme will not at any time exceed U.S.$10,000,000,000 (or the equivalent in other currencies), subject to any increase or decrease described herein. The payment and delivery of all amounts due in respect of Notes issued by CGMHI will be unconditionally and irrevocably guaranteed by Citigroup Inc. (the CGMHI Guarantor) pursuant to a deed of guarantee dated 24 March 2016 (such deed of guarantee as amended and/or supplemented and/or replaced from time to time, the CGMHI Deed of Guarantee) executed by the CGMHI Guarantor. The Issuer and the CGMHI Guarantor have a right of substitution as set out in the Terms and Conditions of the Notes set out herein. Notes may be issued on a continuing basis to Citigroup Global Markets Limited and/or Citigroup Global Markets Inc. and/or any additional dealer appointed under the Programme from time to time by the Issuer (each a Dealer and together the Dealers) which appointment may be for a specific issue or on an ongoing basis.
    [Show full text]
  • USD Callable Daily Range Accrual Note
    USD Callable Daily Range Accrual Note Issued by UBS AG, Jersey Branch SSPA: Capital Protection with Coupon (1140) Valor: 19065479 / ISIN: CH0190654795 Private Placement Final Termsheet This Product does not represent a participation in any of the collective investment schemes pursuant to Art. 7 ff of the Swiss Federal Act on Collective Investment Schemes (CISA) and thus does not require an authorisation of the Swiss Financial Market Supervisory Authority (FINMA). Therefore, investors in this Product are not eligible for the specific investor protection under the CISA (this paragraph is relevant to public offerings in Switzerland only). 1. Description of the Product Information on Underlying Underlying 3 month USD LIBOR Rate as determined by the Calculation Agent by referring to the Reuters Page LIBOR01 at 11:00 a.m. London time on each Business Day. Product Details Security Numbers Valor: 19065479 / ISIN: CH0190654795 / Common Code: 082861661 Issue Size USD 1,000,000 Specified Denomination / Nominal USD 1,000 (traded in nominal) Issue Price 100% of the Specified Denomination (percentage quotation, subject to market conditions) Quotation The Products are trading DIRTY. Accrued Interest is included in the secondary market price. Settlement Currency USD Interest Interest Rate x (n/N) x Specified Denomination x Day Count Fraction N = the number of calendar days in the Interest Period n = the number of calendar days in the Interest Period that the Underlying is within the following range at fixing (inclusive): Period Interest Rate p.a. Day Count Range on Fraction Underlying Year 1-Year 2 3.00% p.a. 30/360 0.00 – 2.50% Year 3-Year 10 3.00% p.a.
    [Show full text]
  • Structured Alternatives to Structured Notes
    Masterclass: Structured Alternatives to Structured Notes Tuesday, February 23, 2016 8:30 AM – 9:30 AM EST Seminar Presenter: Anna T. Pinedo, Partner, Morrison & Foerster LLP 1. Presentation 2. Morrison & Foerster FAQ Guide: “Frequently Asked Questions about Unit Investment Trusts” 3. Morrison & Foerster FAQ Guide: “Frequently Asked Questions about Closed-End Funds” 4. Morrison & Foerster Newsletter: “Structured Thoughts – Volume 7, Issue 2” 5. Morrison & Foerster Newsletter: “MoFo Tax Talk – January 2016” Masterclass: Structured Alternatives to Structured Notes © 2009 Morrison & Foerster LLP All Rights Reserved Attorney Advertising NY2-657166 NY2 766600 © 2010 Morrison & Foerster LLP All Rights Reserved | mofo.com Rights | All Reserved mofo.com & LLP Morrison MorrisonLLP | Foerster & Foerster Rights© 2010 © 2016 All Reserved Agenda Addressing TLAC through finance sub issuances Basic repackaging concepts Repackaging through a trust on an exempt basis Repackaging in reliance on Reg ABII 40 Act vehicles This is MoFo. | 2 TLAC and New Issuance Programs This is MoFo. | 3 TLAC and new issuance programs US G-SIB issuers of structured notes already are making plans to prepare to comply with the requirements of the Federal Reserve Board’s proposed long-term debt (LTD), total loss-absorbing capacity (TLAC), and clean holding company rules For structured products that reference asset classes other than rates, and without addressing the 5% excluded liabilities provision, it is likely that US G-SIB issuers of structured notes will establish finance company subsidiaries that will be the issuers of structured products. If the G-SIB issuer establishes a new subsidiary that is a finance company, the issuer’s SEC disclosure obligations are reduced (as opposed to issuing through a subsidiary that is an operating company This is MoFo.
    [Show full text]
  • Structured Products: Overview and Performance”
    UNIVERSITY OF PIRAEUS Department of Banking & Financial Management Postgraduate part-time programme in Financial Analysis “Interest rate, Equity, FX and Commodity linked Structured Products: Overview and Performance” Submitted by Smaro – Michaela Balta Supervisor: G. Skiadopoulos September 2007 - 1 - Table of Contents Chapter 1: Introduction.......................................................................................................- 4 - 1.1 What are Structured Products...............................................................................- 4 - 1.2 The Origin of Structured Products........................................................................- 4 - 1.3 The Structure of the study.....................................................................................- 6 - Chapter 2: How Structured Products are designed...............................................................- 7 - 2.1. Risk-free asset element.........................................................................................- 7 - 2.2. Option element.....................................................................................................- 9 - Chapter 3: Classification of Structured Products...............................................................- 13 - 3.1 Classification based on the existence of principal protection:..............................- 13 - 3.2 Classification based on the Underlying benchmark their performance is linked to:- 13 - 3.2.1 Interest rate-linked Notes...........................................................................-
    [Show full text]
  • Structured Products at Janney Montgomery Scott
    INVESTOR EDUCATION: INVESTMENTS STRUCTURED PRODUCTS AT JANNEY MONTGOMERY SCOTT Structured investments are debt securities derived from or based on a single security, basket of securities, index, commodity, foreign currency, or other asset classes. Janney offers two primary types of structured products—Market-Linked Certificates of Deposit (MLCDs) and Structured Notes. PRODUCT HIGHLIGHTS It is important for any investor to understand the features and risks of structured products before investing. Those features Structured products are a hybrid between two asset and risks are described in the prospectus. Credit quality of classes. Typically issued as an unsecured corporate bond the issuer, performance of the selected asset class, product or certificate of deposit with a fixed term, they include structure, liquidity, pricing, and tax treatment are important a derivative component whose cash flow and value are considerations when purchasing such an investment. determined from performance of another underlying investment or asset class. Structured products or market-linked investments: JANNEY’S STRUCTURED PRODUCTS • Can be purchased through an initial offering or in a Janney offers: limited secondary market. • Market-Linked CDs • Are issued as a bond or certificate of deposit (CD) with a fixed term or maturity. • Structured Notes • Have a specified underlying investment, the performance of which will determine cash flow, MARKET-LINKED CDS value, and investment return. Overview May include varying levels of capital “protection,” but • Market-Linked Certificates of Deposit (MLCDs) are are also subject to the risk that the issuer defaults or the structured products whose performance is largely based investment is not held to maturity, which may result in on one or more underlying securities or financial indexes.
    [Show full text]
  • “The Pricing of Structured Notes with Credit Risk”
    “The pricing of structured notes with credit risk” AUTHORS Tsun-Siou Lee Hsin-Ying Lin ARTICLE INFO Tsun-Siou Lee and Hsin-Ying Lin (2009). The pricing of structured notes with credit risk. Investment Management and Financial Innovations, 6(4-1) RELEASED ON Wednesday, 10 February 2010 JOURNAL "Investment Management and Financial Innovations" FOUNDER LLC “Consulting Publishing Company “Business Perspectives” NUMBER OF REFERENCES NUMBER OF FIGURES NUMBER OF TABLES 0 0 0 © The author(s) 2021. This publication is an open access article. businessperspectives.org Investment Management and Financial Innovations, Volume 6, Issue 4, 2009 Tsun-Siou Lee (Taiwan), Hsin-Ying Lin (Taiwan) The pricing of structured notes with credit risk Abstract It is inappropriate to ignore counterparty risk when pricing structured products, especially after the financial tsunami that occurred in 2008. Motivated by these circumstances, we developed an exogenous model that embeds the concept of Moody’s KMV model for evaluating the issuer’s credit risk premium under the framework of American binary put option. We select equity-linked structured notes to illustrate that the model is applicable to any kind of financial deriva- tive. The CIR model and GJR-GARCH model are employed to forecast both risk-free rate and variance paths. Fair price under issuer’s credit risk can then be estimated by deducting the premium from the default-free price. The default event can be triggered at any time point and the recovery rate is time-varying, depending on the capital structure of the issuer upon default. Our numerical example shows that the price of a 2-year USD equity-linked note issued by JP Morgan Chase is about 0.9% lower than otherwise identical the default-free note.
    [Show full text]
  • Frequently Asked Questions About Exchange-Traded Notes
    FREQUENTLY ASKED QUESTIONS ABOUT EXCHANGE-TRADED NOTES prospectus for $100,000,000 of ETNs and sell only Understanding Exchange‐Traded Notes $4,000,000 principal amount of ETNs (the minimum amount to satisfy the NYSE Arca listing requirements) What are Exchange‐Traded Notes? on the initial trade date. After the initial trade date, the Exchange‐Traded Notes (“ETNs”) are senior unsecured ETN issuer can continue to issue new ETNs debt obligations that are listed on a national securities (“creations”) up to the full prospectus amount, as exchange. ETNs provide a return to investors based on additional investors purchase the ETNs. the performance of an underlying reference asset. Under the applicable listing rules, an ETN may be linked to equity indices, commodities, currencies, fixed Listing ETNs on a National Securities Exchange income securities, futures or any combination of two or more of these reference assets. Where are ETNs listed? ETNs are listed on the NYSE Arca and the Nasdaq. The Who issues ETNs? BATS Exchange also permits the listing of ETNs. ETNs generally are issued by companies registered with Source: NYSE Arca Rule 5.2‐E(j)(6); Nasdaq Rule 5710; the Securities and Exchange Commission (the “SEC”) BATS Exchange Rule 14.11(d). that are bank holding companies or banks. What types of underlying reference assets are permitted What is the difference between a listed debt security for ETNs? and an ETN? Under the NYSE Arca listing rules, an ETN may be A typical listed debt security is issued and then settles linked to any of the following: within two or three business days, after which no more securities with the same CUSIP number are issued, an index, or indices, of equity securities (an unless the issuance is “reopened.” In contrast, an ETN ʺEquity Reference Assetʺ); is usually in continuous distribution; i.e., the issuer one or more physical commodities or continues to sell the ETNs after the initial issuance and commodities futures, options or other settlement.
    [Show full text]
  • Know Your Investment Risk
    Know Your Investment Risk Revised June 2020 Standard Chartered Private Bank is the private banking division of Standard Chartered Bank (Singapore) Limited, (Registration No. 201224747C) (GST Group Registration No. MR-8500053-0). In Hong Kong, Standard Chartered Private Bank is the private banking division of Standard Chartered Bank (Hong Kong) Limited (CE#AJI614). Standard Chartered Bank (Hong Kong) Limited is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission. Know Your Investment Risk Premium Currency Investment ........................................................................................................................ Page 02 Commodity-Linked Structured Investment Linked To A Single Underlying Commodity .................................. Page 09 Equity Linked Structured Notes Linked To Reference Asset(s) ....................................................................... Page 16 Equity Linked Fixed Coupon Structured Notes Linked To Reference Asset(s) ................................................ Page 25 Equity Linked Range Accrual Structured Notes Linked to Reference Asset(s) ................................................ Page 35 Equity Linked Certificate Plus Notes Linked To Reference Assets ................................................................. Page 46 (Potential Bonus Coupon Applicable At Maturity If No Knock-In Event) Equity-Linked Phoenix Autocall Structured Notes With Memory Coupon Feature .......................................... Page 60 Equity Linked “Twin
    [Show full text]
  • Credit Suisse Structured Products
    Fixed Terms - 15 October 2013 Telephone Contacts Conversations on these phone lines may be recorded. Private Individuals: +41 (0)44 332 66 68 Selected Key Parameters We assume that you have no objections thereto. Institutional Investors and Banks: +41(0)44 335 72 15 Credit Suisse Structured Products Credit Linked Note on Jaguar Land Rover Automotive PLC (1) 25 October 2013 until 20 December 2018 The Notes do not constitute a collective investment scheme within the meaning of the Swiss Federal Act on Collective Investment Schemes (CISA). Therefore, the Notes are not subject to authorisation by the Swiss Financial Market Supervisory Authority (FINMA) and potential investors do not benefit from the specific investor protection provided under the CISA. The Notes are structured products within the meaning of the CISA. This is a structured product involving derivatives. Do not invest in it unless you (the Purchaser as defined on page 1) fully understand and are willing to assume the risks associated with it. Warning: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. Investors are advised to exercise caution in relation to any offer. If an investor is in any doubt about any of the contents of this document, the investor should obtain independent professional advice. This is a structured product which involves derivatives. Do not invest in it unless you fully understand and are willing to assume the risks associated with it. If you are in any doubt about the risks involved in the product, you may clarify with Credit Suisse AG or seek independent professional advice.
    [Show full text]
  • Unhappy with Low CD Rates? a Structured Note May Be the Answer
    Timely, Trusted Personal Finance Advice and Business Forecasts SMART INSIGHTS FROM PROFESSIONAL ADVISERS Unhappy with Low CD Rates? A Structured Note May Be the Answer What are structured notes? How do they limit risk while allowing for gains? Considering their pros and cons, could a structured note be right for you? Find out how to tell. Getty Images By KEVIN WEBB, CFP | Kehoe Financial Advisors January 20, 2021 A question that commonly comes my way lately is, “How can I earn a higher return on my cash and CDs?” It’s a dilemma many find themselves in with the current market environment of low interest rates and a stock market near record highs. While low interest rates help borrowers, as highlighted by the surge in mortgage refinancing last year, it has strained savers who are earning next to nothing with their deposits. The usual recommendations for a higher return than cash include using a CD ladder, shopping local credit unions for higher rates, seeking high-interest savings accounts with online banks, and turning to bonds, among others. All of these are usually viable solutions to squeeze out a little more return and may still be appropriate for some, depending on their goals. But the problem this time around is that the extra yield does not go as far as it used to. Low interest rates have brought down the expectations on these investments, and the added return may still be less than desirable for some. On the other end of the spectrum, dividend-paying stocks can be an option, especially for the long-term investor.
    [Show full text]
  • Structured Products Building a Modern Portfolio Investing Is About Making Your Money Work for You, Protecting What You Have, Or Growing It
    Structured Products Building a Modern Portfolio Investing is about making your money work for you, protecting what you have, or growing it. Often all three. Investing is also about addressing your goals, looking after your family, creating security in retirement. It’s not about knowing the future – it’s about planning for the future. Investors increasingly use structured products to build a modern portfolio, manage risk and realize their goals. At Oppenheimer, we are here to help you. What are Structured Products? Structured products may appear complex but by financial institutions and are subject to the their popularity over several decades with both creditworthiness of the respective companies. In this institutional and individual investors bears witness way, structured products are similar to bonds. to their ability to help address problems and fulfill investor needs. Moreover, when a structured Unlike a bond, however, the payout of a structured product matures, its payout is pre-defined and product is linked to the performance of the based on terms which you are able to review before underlying. A structured product may expose you make your investment decision. This provides investors to some or all of the upside of the clarity and transparency. underlying, or it may offer a high coupon payment. Meanwhile, if the underlying declines a structured A structured product provides many of the product may expose investors to some or all of the characteristics of a bond with certain features downside market risk of the underlying. and risks of another asset, which we refer to as the underlying. Structured products are issued Idea generation: Understanding the market, understanding investors The structured products offered at Oppenheimer have been carefully put together by specialists who consider market conditions, recommendations made by the Oppenheimer research team, and the goals and needs of our diverse client base.
    [Show full text]