Capital Guarantee
Ratchet Floater
Ratchet floaters are a type of exotic structure that have periodic caps and a minimum coupon.They fall into the category of fixed income capital guaranteed products.
Floored Floaters
Floored Floaters are capital guaranteed products falling in the range of the fixed income asset class. They pay a yearly, semi-annually or quarterly coupon that is linked to an economic variable such as the 3-month LIBOR (London Interbank Offered Rate). In addition, if the economic variable is lower than a predefined floor, then that floor determines the level of the coupon.
Shark Notes
Shark notes are classified as short term capital guaranteed products that include a knock-out barrier; they sometimes feature a "rebate". They can serve two purposes, depending on the way they are structured:
Capital Guarantee without Cap
A Capital guaranteed product without cap is composed of a zero-coupon bond and a call option. The capital guarantee part is assured by the zero bond, and the participation is enabled through the call option.