Capital-at-Risk Note
Definition
What is Capital-at-Risk Note?
A structured note whose principalThe original amount of money invested or lent, excluding later returns. may be reduced if specified market conditions occur.
Example in practice
How This Looks in Practice
The investorA person or organisation that commits capital with the expectation of a financial return. loses part of principal if the underlying index breaches the barrier.
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Related Terms
Structured Product
An investment combining debt and derivatives to create a defined payoff.
Structured ProductsPrincipal-Protected Note
A structured debt instrument designed to return some or all principal at maturity, subject to issuer credit and terms.
Structured ProductsAutocallable Note
A structured note that redeems early if the underlying meets specified conditions on observation dates.
Index InvestingIndex
A statistical measure tracking the performance of a defined group of securities or assets.