Bank Notes: We have a new one!

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Such hybrid notes are demonstrating the value of their design: a contingent, protected value, with downside protection to boot.

 

Contingent Cash Flow 7.4%

Forgive us if we review a bit. This form of security is interesting. The Industry calls them 'Bank Notes'. They are highly time sensitive with the features of a bond including a maturity date but with features of a stock as well.

Notable in this example from June 2017:

• Semi-annual AutoCall  Linked to S&P/TSX Bank Index
• 7.4% per Annum contingent Coupon paid semi-annually
• 20% Contingent Protection at Maturity

This is one of several such hybrid notes. Time sensitive and timely. A downside protection with cash flow potential, contingent upon the underlying index: Bank, Utilities, TSX and more.

Such hybrid notes are demonstrating the value of their design: a contingent protected value, with downside protection to boot.

It looked interesting in June this year. Today, we have demonstrable reasons to consider ‘Bank Notes’ for your portfolio. While these have been previously issued, and no longer available, they do tell a good story.

Take a look at how these various ‘Bank Notes’ have performed, as of October 27, 2017:

Clearly this concept is worth considering. Should you choose to add one, or perhaps a few 'Bank Notes' to your portfolio?

Let’s talk about it. We are a phone call away. 905-897-5212 Or 1-800-387-9314

We are The Kingsmill Saar Wealth Management Group. We are here to help.