Overview
CoreNotes are medium-term notes for the individual investor. A variety of CoreNotes tranches are issued by investment grade issuers on a weekly basis.
CoreNotes are an easy way for individual investors to participate in the new issue debt market and can be purchased through a participating broker dealer by prospectus only. Key Characteristics - Low Minimum Investment - of $1,000, with increments of $1,000 thereafter
- Coupon payment options - monthly, quarterly, semi-annual or annual basis
- Structures - both callable and bullet structures at the election of the issuer
- Various maturities - from 9 months to 30 years
- Settlement - typically settled three business days following the close of an offering period.
- Benefits
Variety & Flexibility- Each week, there will typically be a number of CoreNotes offerings, with various issuers, maturities, coupon rates and interest payment schedules. Maturities may be offered from 9 months to 30 years. Both callable and bullet structures may be posted.
The variety of options available enable individual investors to assess and match their income and portfolio needs. Low Minimum Investment, Straight-forward Pricing and Availability - Investors can purchase CoreNotes for as little as $1,000, and in increments of $1,000 thereafter. CoreNotes are priced at par, and coupons remain constant throughout the offering period. Weekly posting of rates typically provides customers consistent availability of CoreNotes. Up to One Week to Make Investment Decisions - New CoreNotes tranches are announced each week, and are generally set for a 5 day period. (1) Since the price (par) and coupon remain fixed throughout the week, the individual investor has typically up to one week to make an informed investment decision. Access to New Issue Market - With CoreNotes, investors will have the opportunity to choose from a variety of corporate and agency names, and a number of different structures in the new issue debt market, on a weekly basis. Estate Planning - Many CoreNotes issuers have incorporated a Survivor's Option feature which, in the event of death, allows the holder's estate the option of 'putting' the Notes back to the issuer at par. Some limitations and restrictions apply and investors must read the prospectus of each issuer for full disclosure of the feature.
Bank of America Corp. InterNotes Boeing Capital Corp. InterNotes National Rural Utilities InterNotes CIT Group Inc. InterNotes DaimlerChrysler NAH Corp. InterNotes The Dow Chemical Company InterNotes EOP Operating Limited Partnership InterNotes GE Capital Corp. InterNotes HSBC Finance Corp. InterNotes PHH Corp. InterNotes Protective Life InterNotes Prudential Financial, Inc. InterNotes Sears Roebuck Acceptance Corp. InterNotes
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