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Structured Products

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Structured investments are debt securities derived from or based on a single security, basket of securities, index, commodity, debt issuance, option, swap and/or foreign currency. Janney offers three primary types of structured products:

• Market-Linked Certificates of Deposit (CDs)
• Reverse Convertibles
• Structured Notes

Structured products are a hybrid between two asset classes. Typically issued as an unsecured corporate bond or certificate of deposit (CD) with a fixed term, they include a derivative component whose cash flow and value are determined from performance of another underlying investment or asset class. Structured products or market-linked investments:

• Can be purchased through an initial offering or in a limited secondary market
• Are issued as a bond or CD with a fixed term or maturity
• Have a specified underlying investment, the performance of which will determine cash flow, value and investment return. [This investment may be a stock market index, like the S&P 500, a single security or a basket of securities, for example.]
• May include varying levels of capital “protection,” but are also subject to the risk that the issuer defaults or the investment is not held to maturity, which can result in principal loss
• Are often viewed as “buy and hold” investments

Credit quality of the issuer, performance of the selected asset class, product structure, liquidity, pricing and tax treatment are important considerations when considering a structured product. It is important to understand these – and other – features and risks of structured products, described in the prospectus, before investing. Our Financial Advisors can help you determine whether structured products may be appropriate for your portfolio given your goals and risk tolerance. 

The information presented herein is taken from sources believed to be reliable, but is not guaranteed by Janney as to accuracy or completeness. Any comments are subject to change without notice. Investments in this product may not be suitable for an investor depending on his/her investment objective, financial situation and tax status. For investment advice specific to your individual situation, or for additional information on this or other topics, please contact your Janney Financial Advisor and/or your tax or legal advisor.