Structured notes are securities that combine the features of fixed income and equity securities. As opposed to traditional bonds that generally pay out a fixed annual coupon, structured notes generally pay out some variable return based on the performance of the equity market, with this return potentially being significantly higher (or lower) than its counterpart. A feature that they usually share is that they are both considered senior unsecured debt by the issuing corporation, and both potentially offer the peace of mind that the securities mature at par value. For conservative clients who are interested in potentially generating returns greater than that available from a fixed coupon payment and who are willing to risk under performing that fixed coupon, this product may be a great fit.

Our Model
Rather than issuing structured notes with our own credit, we play a consultative role in your investments in this product.  By serving as consultants, we feel that we can have access to more offerings and can offer you more competitive pricing, both of which may significantly add value to our relationship. For example, when working with another dealer that may directly issue these notes, you would be limited to investing in their available offerings and would be subject to the pricing that they have set in the notes. With our model, we leverage relationships that we have with multiple issuing dealers, which results in significantly more offerings. We add further value by sifting through these available offerings to identify the ones that provide our clients with the best terms and the best risk/reward profile. We think that our model can provide you with more flexibility combined with very competitive pricing.

Prior to purchasing structured products, you should consult with your financial advisor about all of the potential risks and benefits associated with the product. This literature does not purport to be a complex description of the securities markets or any risks associated with purchasing structured products and any other derivative related investment. Structured products involve unique risk considerations and tax consequences and are not suitable for all investors. Prior to purchasing structured products, an investor must be approved for option trading as recommended under NASD NTM 5-59. Prior to receiving approval, an investor must receive a copy of the Characteristics & Risks of Standardized Options, which can be provided to you by your financial advisor. Finally, you should consult a tax expert regarding any potential tax implications involved with purchasing or selling a structured product, prior to placing a trade.