Australian Stock Price Riskless Indexed Note - ASPIRIN

A zero-coupon bond with a return linked to the Australian all-ordinaries stock index. The bond has a four-year maturity and is repayable at face value, with a yield derived from the index's percentage increase over a predetermined level.

Also known as an "All-Ordinaries Share Price Riskless Indexed Note".

An aspirin is an alternative investment opportunity to those who wish to capture gains in the stock market, but mitigate the downside risk. The note will pay the investor a return when the stock index performs above a specific percentage, for example, if the hurdle was 10% and the index returned 15%, the aspirin holder would receive a yield of 5%. The downside of the note occurs if the index does not outperform its hurdle. In this case, the investor experiences zero return over a four-year period.


Investment dictionary. . 2012.

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