What are Income Structured Notes?

Income structured notes are a type of investment product that can provide investors with an opportunity to earn a regular stream of income. These notes are designed to provide investors with a combination of fixed income and equity exposure, making them a popular choice for those looking to diversify their portfolios.

Primary features of income structured notes

One of the key features of income structured notes is the regular payment of interest. The interest payment on these notes is typically set at a fixed rate and is paid out at regular intervals, such as monthly or quarterly. This regular payment of interest can provide investors with a stable and predictable source of income, making them a popular choice for retirees or those looking to supplement their income.

Another feature is their flexibility. These notes can be structured in a variety of ways, depending on the needs of the investor. For example, some notes may have a higher level of equity exposure, while others may have more fixed-income exposure. This flexibility allows investors to tailor their investments to their specific needs and risk tolerance.

Additionally, these notes can be structured as callable or non-callable. Callable notes give the issuer the option to redeem the note before maturity, while non-callable notes cannot be redeemed early. Callable notes may offer a higher yield to compensate investors for the risk of early redemption.

What are the risks? 

It’s important to note that income structured notes can carry some risk as well. Like all investments, there is a risk of loss, and investors should carefully consider the terms and conditions of the note before investing. Additionally, these notes may be subject to credit risk if the issuer defaults on the note.

These notes can be a useful investment product for those looking to earn a regular stream of income. With their regular payment of interest, flexibility, and potential for higher yields, these products can be a valuable addition to a diversified investment portfolio. However, it’s important for investors to carefully consider the risks associated with these.

If you have any questions about structured notes or your investment portfolio, feel free to reach out to us here at Good Life Asset Strategies.


The views expressed represent the opinion of Good Life Asset Strategies, LLC. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness.  

Income structured notes