Ltd. The purpose of this section is not to describe every type of structured not available. There are literally hundreds. Rather, it is to describe the underlying concept of the structured note. The type of structured note is only limited by the creativity and imagination of the parties involved.
Structured notes are intermediate term debt securities.
Their interest payments are determined by an occasionally complex formula. Structured notes provide investors with an opportunity to implement strategies based on their views about the direction of interest rates, the range, the volatility, the shape of long term rates vs. short term rates, and the direction of equity and commodity prices. Structured notes are not generally used for hedging. However, they do provide liquidity to the markets as dealers hedge their positions in other markets. These other markets are used by hedgers.