NoteHub

Autocallable Notes in Canada

Autocallable notes (sometimes called snowball notes) are structured products that pay an enhanced return when the underlying index rises above a set auto-call level. If the index doesn't reach that level, any missed coupons accumulate and are paid out when the note is eventually called or at maturity. Your principal is at risk if the index falls below the downside barrier at maturity.

Return Profile

Best Case

Barrier 70%Autocall 110%Opening060%80%100%120%

If: Underlier rises above autocall level (110%); note is called early

Then: Principal + accumulated fixed return (16.0%)

Base Case

Barrier 70%Autocall 110%Opening060%80%100%120%

If: Underlier declines but stays above barrier (-30%) at maturity

Then: Principal + fixed return (80.0%)

Worst Case

Barrier 70%Autocall 110%Opening060%80%100%120%

If: Underlier falls below barrier (-30%) at maturity

Then: Principal × (1 + underlier return)

For illustrative purposes only. Actual returns depend on specific note terms.

How It Works

1

On each observation date, the index is checked against the auto-call level (typically set at or above 100% of the initial level).

2

If the index is above the auto-call level, the note redeems early and you receive your principal plus all accumulated coupons.

3

If the index is below the auto-call level, the coupon for that period accrues. It will be paid later when the note is eventually called or matures above the barrier.

4

At maturity, if the index is above the downside barrier, you get your principal back plus any accumulated coupons.

5

If the index is below the downside barrier at maturity, you suffer a loss proportional to the index decline.

Investor Suitability

  • Growth-oriented investors comfortable with equity-linked risk
  • Moderately bullish outlook on the underlying index
  • Comfortable with price volatility and uncertain investment term
  • Short- to medium-term holding period
  • RRSP, RRIF, RESP, and TFSA eligible

Investment Considerations

  • Your principal is at risk - you can lose a significant portion of your investment
  • Barrier protection only applies if you hold to maturity
  • Payments depend on the issuing bank's creditworthiness
  • Selling before maturity on the secondary market may result in a loss
  • Early trading fees may apply
  • Taxed as interest income outside registered accounts
  • Not covered by CDIC deposit insurance

Currently Available (10+)

BMOBMO AutoCallable Barrier Notes, Linked to Solactive Equal Weight Canada Banks 35 AR Index
7y 12.20% / 85.40% max -20%
BMOBMO AutoCallable Barrier Notes, Linked to Solactive GDX Daily CAD Hedged 44 AR Index
5y 27.90% / 47.90% max -20%
BMOBMO AutoCallable Principal Protected Deposit Notes, Linked to Solactive XLP Daily CAD Hedged 167 AR Index
7y 5.40% / 37.80% max -100%
BMOBMO AutoCallable Principal Protected Deposit Notes, Linked to Solactive XLP Daily CAD Hedged 167 AR Index
7y 7.15% / 50.05% max -100%
SCOTIABNS Canada Large Cap (AR) Index Autocallable Notes
7y 10% / 70% max -30%
CIBCCIBC U.S. Large Cap Energy Select Hedged to CAD Index (AR) Autocallable Notes
7y 18.40% / 128.80% max -30%
CIBCCIBC Canadian Energy Select Index (AR) Autocallable Notes (F-Class)
7y 21.25% / 148.75% max -30%
CIBCCIBC Canada Large Cap Equity Index (40 AR) Autocallable Notes
7y 12% / 72% max -20%
CIBCCIBC Canadian Energy Select Index (AR) Autocallable Notes
7y 16.50% / 115.50% max -30%
CIBCCIBC U.S. Big Banks Hedged to CAD Index (AR) Enhanced Autocallable Notes
7y 3% / 42% max -10%
View all 91 notes →

Other Structure Types

Autocallable Coupon NotesGrowth NotesBuffer Growth NotesBarrier Fixed Coupon NotesBarrier Coupon NotesPrincipal Protected Notes

For educational purposes only. Not investment advice. Information may contain errors or omissions. Consult a qualified financial advisor before making investment decisions.