Exchange Traded Note


Exchange Traded Note

A debt security issued by a financial institution with no coupon and no principal protection. That is, unlike other bonds, the issuer of an exchange traded note is not required to repay the principal at maturity. Rather, the return on an exchange traded note is determined by the performance of some stated market index. Exchange traded notes are negotiable securities traded on an exchange. They often have maturities as long as 30 years.