structured note

structured note definition - finance
A bond that includes an embedded derivative (a futures contract or feature) that is designed to create a payoff that fits the requirements of a specific investor. A note may be structured to pay interest to the noteholder in the event that gold prices fall or some other situation occurs. A structured note also might involve a series of swap agreements in which one note is exchanged for another after a certain period of time or when a particular circumstance occurs.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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