The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: SUNS||Date: 4/11/2001 1:20 PM|
|Author: husam666||Number: 1485 of 35400|
i just got an email from CSFBDirect offering the opportunity to invest in SUNS (Stock Upside Note Securities). they are described as follows:
"Equity Linked Notes (ELN). An ELN is an instrument that provides investors fixed income-like principal protection together with equity market upside exposure. An ELN is structured to combine the economics of a long call option with a long discount bond position. The investment generally provides 100% principal protection and may be appropriate for conservative equity or fixed income investors who desire equity exposure with controlled risk."
"Lehman Brothers 3- Year 109% Minimum Redemption SUNS are a series of senior debt of Lehman Brothers Holding Company whose value is linked to the performance of the Nasdaq 100 Index"
a rep at CSFB said essentially the money is tied up for 3 yrs, you are guaranteed a minimum return of 9% over 3 yrs (or about 3%/yr), but since they are linked to the NSDQ100 they can appreciate at a max of 8-10% per quarter, depending on the performance of the NASDAQ market.
Does anybody know anything about these,and if yes, please fill me in. At first glance they seem appealing.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|