Okay ive noticed my bank is currently opening an offer of capital notes.
Now im not new to trading but have never dealt with capital notes, but from research is below the basic gist of it?
- You are paying for a "Note" to help the bank recover losses
- In return the bank will pay you a % interest monthly/yearly etc on the money you have "loaned them"
- When matured the bank will buy back the note
Risks:
- The notes could potentially drop in value or even be completely written off.(always a risk though). - What is the chances of this happening?
Questions
I'm trying to work out if having notes in a diverse portfolio are even worth it?
Who are they more catered to?
All it seems like is a high interest long term bank account with more risk?
Can there be big rewards?
