No. of Recommendations: 0
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.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.