This means investors are going to have to be patient and expect more of these large low-volume moves, at least until signs appear that the United States Federal Reserve is going to pause its rate hikes, as indicated by factors such as core consumer price index reports.
Structured notes are a stock/bond hybrid because they are a debt obligation issued by a bank containing an embedded derivative component that results in a coupon payment linked to the performance of a particular index, exchange-traded fund or even basket of stocks. For example, we recently participated in a callable income note on the Canadian banks. It will pay an annualized 9.54-per-cent coupon on a monthly basis contingent on the Canadian banks not falling more than 40 per cent from current levels. Keep in mind that many have already fallen 15 to 25 per cent from their April highs.Article content