What Are Autocallable Notes?

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 an Autocallable?

An autocallable is a popular structured product that pays a high coupon if the underlying – typically equity indexes or single stocks – passes an upside barrier, at which point it automatically matures and the investor's principal is returned.

Are structured notes good investments?

Its A Very Risky Investment

Certain structured notes are designed to be riskier investments, because they are oriented to have a higher potential payoff. However, most structured notes are designed to be risk-based because they offer two things—a measure of downside protection and some rate of return or participation.