What are CIBC Principal Protected Notes?
CIBC Principal Protected Notes are innovative financial products that combine key investment characteristics of both stocks and bonds. The distinguishing feature of these investments is that the principal amount — your original investment — is 100% protected if the PPNs are held to maturity. Investors who purchase conventional bonds can expect to receive the principal amount of their investment when the bond matures, along with interim coupon payments over the term of the bond. Similarly, CIBC PPNs will repay the principal amount at maturity, with the potential to receive interest payments periodically or in a lump sum at maturity. Unlike conventional bonds, however, not all interest payments made by CIBC Principal Protected Notes are predetermined on the purchase date. Instead, the amount of interest is typically linked to stocks or equity indices, but may also be linked to mutual funds, interest rates, commodities and sometimes even currencies or bonds. If the underlying assets perfo
