Offers downside protection
Potential to generate regular income
Improve the risk-return profile of your overall portfolio
With most major banks participating in their issuance, including Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America, Citi among others.
Structured Notes are hybrid securities that are issued as debt, but whose outcomes are tied to the performance of an underlying stock.
Each individual Structured Note pays a quarterly coupon, while providing downside protection.
Portfolio of notes
Yieldstreet offers a portfolio of multiple structured notes each referencing a single underlying stock
Issued by major banks
Yieldstreet will only purchase Structured Notes from major, investment-grade banks such as Goldman Sachs, Morgan Stanley, JP Morgan, Citi, Bank of America, Vanguard, Merrill Lynch, among others
Through Yieldstreet you can invest in a pool of notes with as little as $15K. Typically you need $250K to purchase Structured Notes directly from their issuers.
Transparent selection process
Designed to ensure that the underlying stocks have technical and fundamental characteristics which are expected to minimize the likelihood of significant price decline
Investments typically range from 24-36 months
Reduced reinvestment risk
Yieldstreet will reinvest called notes according to the reinvestment criteria. This reduces friction and ensures that your capital stays at work.
You used to need over $250K to buy just one note. We solved this problem and allow investors to gain access to the product at a fraction of the cost.Learn the basics
The ability to spread capital over a number of underlying notes helps reduce the concentration risk of the investment.Get more information
Review an investor deck describing these outcome-based investments to get a more detailed sense of how Structured Notes could work for you.Dig into the details
An investment in a structured note portfolio is illiquid. The portfolios have a target initial maturity of 2 years with one 12-month extension option (to account for any reinvested capital during the investment period, which lasts for the first 12 months).
Each structured note purchased in the portfolio will follow a transparent process that requires each underlying stock and note to meet certain criteria. The goal of this process is to ensure that the underlying stocks have fundamental and technical characteristics at the time of selection that are expected to minimize the likelihood of any significant price decline. In addition, each structured note will be chosen to provide a certain minimum amount of downside protection and from a select list of major banks. Please review the Private Placement Memorandum on each Structured Notes Portfolio offering page to learn more.
Diversified, tech, ESG and consumer focused structured note portfolios are offered on Yieldstreet.
A 1.25% annual management fee is charged. Initial coupon payments will be applied to the $150 annual fund expense.
Usually funded by reallocating capital from the equity portion of a portfolio, the inclusion of structured notes can improve a portfolio’s overall risk/return profile as the notes can help to protect against losses while simultaneously providing a regular source of income for investors.
It is expected that each portfolio will contain between 3-10 underlying notes.
Should the value of an underlying stock that dictates the performance of its respective underlying structured note fall below its downside protection value then investors will experience principal loss. The amount of principal lost will be determined by how far the value of the stock has fallen from the day that the structured note was purchased.
Yieldstreet structured notes portfolios are expected to return a target yield between 7-12% on an annualized basis. Depending on the investment thematic of each portfolio, returns are expected to vary.
Issued as a debt instrument, with coupons that are tied to the performance of an underlying security, typically a single stock or basket of stocks.
Structured notes pay a set yield on a predetermined schedule, while providing a level of downside protection, subject to certain performance criteria being met.