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Financial advisory
RES5Financial Advisory Services✓Wei Ling holds a 100% capital-protected note to maturity, but the ISSUER becomes insolvent; the underlying finished roughly flat. What does the capital 'protection' actually entitle her to?
Capital protection is a promise from the issuer, not a segregated guarantee; if the issuer becomes insolvent the protection is worth only what the investor can recover as a creditor, regardless of the 100% label or holding to maturity.
Believing a 100% protection label survives issuer insolvency.
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