Returns from a Participating Notes are dependent on the performance of some underlying financial instrument.
Typical financial instruments linked to a Participating Note include equities, interest rates, credit, market indices, fixed income instruments, foreign exchange and a combination of these. Potentially enjoy capital gains from Participating Notes by taking a view on the underlying financial instrument. They are usually issued by a financial institution and investors are exposed to the issuer’s credit risk. This type of investment has higher risk and is more suited for experienced investors only.