Ep. 1970: The 11% Trapdoor
About this episode
Don and Tom discuss the complexities and risks associated with an 11.15% coupon structured note from BNP Paribas.
An 11.15% coupon sounds irresistible—until you read the trapdoors. Don and Tom unpack a listener’s BNP Paribas auto-callable structured note and ask the question Wall Street hopes nobody asks: what actually has to happen before you get paid? The answer includes contingent coupons, the worst-performing of three indexes, a five-year lockup, bank credit risk, and a cliff where a 41% market loss can become your 41% loss. Add a 1.5% advisory fee, and this complicated promise fails the show’s favo...
More episodes of Talking Real Money - Investing Talk
- Ep. 1973: One Size Fits Nobody
- Ep. 1972: Your Questions, No Detours
- Ep. 1971: Trust, But Verify
- Ep. 1969: Stay Calm
- Ep. 1968: No Reward Without Risk
- Ep. 1967: Find the Robot
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