Note Investing | What’s a PPN and do Principal Protected Notes belong in your portfolio?

Summary: A Principal Protected Note is a form of a structured note and it’s a bond type instrument that’s issued by the banks. Other forms of structured notes are auto-callable notes and equity linked notes. Usually the Canadian banks are issuing a lot of these in this space and they have a guarantee on the capital at maturity. They’re very similar to bonds. They actually classify as bonds under the fixed income section in a lot of investment policy statements that we see.