Bond Education | Glossary
Principal Status
There are multiple levels of protection for the initial investment in a structured product: Principal Protected - Investor's principal amount will be returned at maturity, regardless of underlying performance. Partial Principal Protected - Investor is exposed to losses limited to less than the full principal amount. Buffered Principal at Risk - Investor's full principal amount is at risk, subject to some level of initial loss protection. Principal at Risk - Investor's full principal amount is at risk.