Principal-Protected Note - PPN

  

Categories: Bonds

The basic dynamic of investing involves the possibility of losing money. You put money into a venture. You might get a nice return. The investment might go toe up.

Principal protected notes eliminate the downside. It’s like riding a bike with training wheels. Or like swimming with sharks who have had their teeth pulled.

The principal-protected notes guarantee the investor will at least receive their principal back. They might not make money, but they won’t lose money either. They have a guaranteed return of at least 0%.

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