WHAT IS A MEDIUM TERM NOTE (MTN)

The Medium Term Note (MTN) is a financial investment product with a specific term to obtain a profit. It is a hybrid product since it combines more than one type of financial instrument, in this case, it combines one fixed income with another variable income in a single product, and this union is precisely what gives it the security of the case and good performance. On the one hand, the fixed income investment will ensure the return on capital while the variable income investment will give you the proposed profit.

To put them more in context, a fixedincome investment product would be something that gives you a fixed monthly or annual profit, for example, bonds, promissory notes, obligations, etc. And a variable income product would be one where the profit varies each month or year, examples of these are shares, investment funds, or SBLC standby letters of credit.

To put it simply, the first pay you the same amount of profit in a particular period (let's take every month as an example), and the second pays you the profit in different amounts, one month may be more, another less, but The idea is that, in the long run, putting together all the months, there is a total positive return on investment.

A structured note would be a mixed product that can be tailored according to the investor's profile, that is, they can be customized. There may be some riskier than others, but those are the ones that provide the highest return on investment.

As an investor, you must define well, together with your advisor of the institution with which you decide to invest the elements of the structured note such as the term, the protection percentage, rate, and special conditions, ensuring that you need and at the same time you feel comfortable.