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Investment Example
Information
Example -"3 Year Interest Rate linked Structured Notes"
- Denomination Currency: USD
- Underlying: 6 Month USD LIBOR
- Coupon Payment:
Coupon payment is made quarterly, and interest is accrued daily at Coupon Rate for each day 6 Month USD LIBOR fixes within the Accrual Range. - Accrual Range: from 0.0% to 6.0%.
Coupon rate: 5%(p.a.) - Coupon Calculation Formula:
- The issuer may exercise its right to call back the Notes before maturity after the 1st quarter of issuance. If the issuer does not exercise such right, coupon payment will be made on quarterly basis. If the Notes is called by Issuer, investors will receive 100% of the principal amount and the coupon payment for the last quarter. The issuer provides 100% principal protection if the investors hold the Notes to maturity.
*The issuer provides 100% principal protection at maturity. - Assume Mr. Chang has invested USD 10,000 (10 units of USD 1,000 per Note) through the Non-Discretionary Trust account for the Structured Notes, and has not redeemed the Notes before maturity. The issuer has not exercised its right to call back the Notes before maturity either. Assuming the actual number of days in each interest rate observation period and the number of days for interest accrued are shown as follows, Mr. Chang can get the following coupon payment during the product tenor:
Mr. Chang would receive USD 1,490.35 of coupon payment in total, and will receive 100% of the principal at maturity.
*The above illustration is only for reference. The figures presented shall not constitute an offer or incentive for offer for trade with the client.
Structured Notes Related Information
- About Structured Notes
- Structured Notes Fees & Channels
- Main risks for investment in"Structured Notes"
Investors Disclaimers
- The investment amount in structured notes through Non-Discretionary Trust account are for investment, not deposit. Therefore, the investment amount is not inclusive of the extent of deposit insurance of the Central Deposit Insurance Corporation (CDIC). The level of principal protection or return of the Structured Notes is provided by the issuers or the guarantors. Banks (the trustee banks) disclaim any responsibility for the management and the performance of the trust account. Investors shall assume all risks that may arise from investment and any possible loss thereof as their own responsibility.
- Underlying performance of Structured Notes in the past does not guarantee its performance in the future. The mark to market price of any structured note may fluctuate and even fall to zero. The investment involves risk, and investors shall make independent judgment on participation in any of the investment cautiously with reference to their own capacity in assuming risks, investment experience, investment objectives, financial positions and related conditions (effects on legal, taxation and accounting aspects).
