PART 1.1: WHAT IS FIXED COUPON NOTES (FCN)
FCN is an equity-based structured note. They offer coupon payments to FCN holders, regardless of market conditions. Now, investors can either get their principal back in full plus coupons, or they are obligated to select the worst performing equity in a basket of equities plus the agreed coupon payments.
PART 1.2: FCN STRUCTURE
FCN has 10 elements: capital injection amount, coupon %, spot price, strike price, knock out (K.O.) price, strike %, knock out (K.O.) %, guaranteed period, start and expiry dates.