Globally-Capped Contract

A type of embedded option found in structured investment products, that limits upside potential of the product over its life.

In Principal Protected Notes, an investor receives a guarantee providing downside protection on the investment. A cost of this downside protection is that the investor will not participate in the full upside potential of the underlying investment. The underlying investment or reference portfolio can be capped locally or globally. As an example, if the limit is expressed in terms of a participation rate of 80% of the total return of the reference portfolio, for the life of the contract, then that would considered a globally-capped contract.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Locally-Capped Contract — A type of embedded option found in structured investment products, that limits upside potential of the product, for specific periods over its life. In Principal Protected Notes, an investor receives a guarantee providing downside protection on… …   Investment dictionary

  • Media and Publishing — ▪ 2007 Introduction The Frankfurt Book Fair enjoyed a record number of exhibitors, and the distribution of free newspapers surged. TV broadcasters experimented with ways of engaging their audience via the Internet; mobile TV grew; magazine… …   Universalium

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • environment — environmental, adj. environmentally, adv. /en vuy reuhn meuhnt, vuy euhrn /, n. 1. the aggregate of surrounding things, conditions, or influences; surroundings; milieu. 2. Ecol. the air, water, minerals, organisms, and all other external factors… …   Universalium

  • Cornell University — Cornell redirects here. For other uses, see Cornell (disambiguation). Cornell University Emblem of Cornell University Motto I would found an institution where any person can find instruction in any study …   Wikipedia

  • Carbon credit — This article deals with carbon credits for international trading. For carbon credits for individuals, see personal carbon trading. For voluntary schemes, see carbon offset. Part of a series on …   Wikipedia

  • Late-2000s financial crisis — The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk …   Wikipedia

  • Germany — /jerr meuh nee/, n. a republic in central Europe: after World War II divided into four zones, British, French, U.S., and Soviet, and in 1949 into East Germany and West Germany; East and West Germany were reunited in 1990. 84,068,216; 137,852 sq.… …   Universalium

  • Openet — Type Private Industry Telecommunications Software Area served Worldwide Employees …   Wikipedia

  • Social Protection — ▪ 2006 Introduction With medical costs skyrocketing and government programs scaled back, citizens bore more responsibility for their health care costs; irregular migration, human trafficking, and migrant smuggling posed challenges for… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.