FYI: Few investments have been more maligned in the press than structured notes, but a new group of exchange-traded funds might soften the negative perceptions.
In theory, structured notes appear to be ideal investments. These debt-like instruments promise the upside of stocks in indexes such as the S&P 500, plus principal protection, akin to that provided by bonds, on the downside. But in practice, they’ve been a source of exorbitant fees for their bank issuers—most recently at Wells Fargo (ticker: WFC); extremely illiquid to trade; and subject to default during periods of market stress, most spectacularly at Lehman Brothers in 2008.
Regards,
Ted
https://www.barrons.com/articles/structured-notes-can-new-etfs-make-them-actually-work-for-investors-1543612302?mod=hp_LEAD_2
