Source: Halo Investing. For illustrative purposes only. This illustration does not take into consideration a client’s specific investment objectives, risk tolerance, or financial situation.
How notes fit in a portfolio
As investing’s Swiss Army knife, notes can be used to add risk, remove risk, or create a variety of different risk-reward scenarios. In this sense, notes can help bridge the gap between stocks and bonds.
When linked to an equity index, Growth Notes target an enhanced upside participation. This is equivalent to a strategy seeking capital appreciation.
For income conscious investors, Income Notes have the potential to pay above-average yields, when compared to equivalent fixed-income opportunities.
Structured Notes offer opportunities for adding a level of downside protection. This built-in protection is a defining feature of Structured Notes. This can help eliminate the need to find uncorrelated assets, appropriate hedges, or whatever other approach you’re currently using to mitigate market risk.
Source: Halo Investing. For illustrative purposes only. This illustration does not take into consideration a client’s specific investment objectives, risk tolerance, or financial situation.
