How Do Autocallable Notes Work?

AutoCallable Notes are short-term market-linked investments offering an above-market coupon if automatically matured prior to the scheduled maturity date. The product is automatically matured (“auto-called”) if the reference asset is at or above its initial level on a predetermined observation date.

What is step down AutoCallable note?

What are SANs? SANs are equity-based structured notes. ... However, coupon payment is conditional upon either the “knock-in” (or “downside barrier”) never being breached on “observation dates” during the note's tenor or the “least performing equity” (or worst performing stock) is above the “knock-out” level.

Are buffered notes a good investment?

Unlike Principal Protected Notes, Buffered Notes offer a limited amount of downside protection. For example, a Buffered Note may protect the investor for the first 25% of erosion of the underlying asset, but any decline in value beyond that is not protected.