Glossary - M

This section provides an explanation for some of the jargon used to describe structured retail products. If you would like us to add additional words then please let us know by clicking here.

Maturity Date

The maturity date of a product is the date on which the investment is repaid.

Maximum Return

Some forms of structured product have a maximum possible return irrespective of the performance of the underlying. Usually this occurs when the product has an explicit cap or maximum return so that any further increase in the underlying have no impact on the product return.

For example, a product might offer a minimum return of 100% of the sum invested plus 100% of any rise in the FTSE100 index capped at 150%. This means that the maximum return on the product is 50% plus the original capital. So even in the FTSE100 doubled over the term the investor would only receive a return of 150% of his initial investment.

Medium Term Note (MTN)

A Medium Term Note (or MTN) is a type of bond. They are usually issued by regular borrowers in the capital markets such as banks, large corporations and supranational bodies.

MTNs are designed to be very quick and cheap to issue compared to normal bonds. This is because much of the legal and regulatory expense is incurred when the MTN program is set up and so each individual issue of MTNs has a relatively small amount of documentation required.


Index of the top 30 shares by market cap listed on the Italian Stock Exchange.

Minimum Return

The minimum possible return irrespective of the performance of the underlying.