derivative instrument whose value is based on that of an underlying . Also, a medium-term bond in which the issuer enters into a swap arrangement to change the required cash flows.
a security (a hybrid debt instrument) that provides investors with a redemption amount (either with full or partial capital protection) and a return paid in function of a specified strategy on a selected underlying asset(s)
a straight bond combined with a derivative security, such as a swap, that offers the investor a customized cash flow pattern
a derivative instrument whose value is based on that of an underlying index.
A security, usually privately placed, that has the form of a bond but a derivative payoff structure. For example, a bond whose principle return at maturity is determined by the performance of an equity index. See Regulatory arbitrage.
an over-the-counter product, which may incorporate several individual instruments – generally options embedded in a debt instrument, such as a medium-term note. The aim is generally to construct a payout profile that is attractive to a specific investor or group of investors, because of their risk-reward preferences and/or opinions on the market.