A Targeted Accrual Redemption Note (TARN) is a type of investment vehicle that combines features of both bonds and structured notes. It pays periodic interest based on the performance of a specific underlying asset or basket of assets, with the eventual return of principal tied to the performance of the underlying asset.The target redemption feature means that the principal is returned to the investor if the underlying assets reach a predetermined level, otherwise the investment matures and the principal is returned. TARNs are generally considered complex and may be suitable for experienced investors who understand the underlying assets and the risks involved.
