Structured Products

Capital Guarantee

Definition

What is Capital Guarantee?

A contractual promise to repay specified capital, dependent on the guarantor's ability to pay.

Example in practice

How This Looks in Practice

The guaranteeA contractual promise by another party to meet an obligation if the primary debtor does not. applies only if the note is held to maturityThe date when a debt investment's principal is scheduled to be repaid..

Keep learning

Related Terms

Structured Products

Structured Product

An investment combining debt and derivatives to create a defined payoff.

Structured Products

Principal-Protected Note

A structured debt instrument designed to return some or all principal at maturity, subject to issuer credit and terms.

Structured Products

Capital-at-Risk Note

A structured note whose principal may be reduced if specified market conditions occur.

Index Investing

Index

A statistical measure tracking the performance of a defined group of securities or assets.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.

Take the quiz
Browse all glossary terms