Structured bond
An issue whose payout depends on events described in advance: the level of an index, the price of a commodity, the credit standing of third parties.
How to read the number
Return of principal is not unconditional here — it is itself part of the condition. That, rather than the arithmetic, is what separates it from an ordinary bond.
When the metric lies
The payout terms live in the documentation, not in the quote. The paper can trade like a bond for years and then behave at maturity like a sold option.
Also known as: structured income bond