are big banks betting on down side?

i'm getting offers like this -

http://secfilings.nyse.com/filing.php?doc=1&attach=ON&ipage=8501424&rid=23

 

No chance the banks are hedged on the other side of the note...

Or that banks routines issue these notes because investors are greedy for yield in a very low interesting environment?

Of course not... must be because of some grand conspiratorial scheme....

 

Geez-is there a cliff notes version of this thing?

 

They hedge out the risks and charge you 1-5% for putting it together.

Advantage to them: they get 1-5% and have little risk.
Advantage to you: you get a structured payout you could do on your own.

 

The first two sentences...

 

how?

 

typo.

meant to say, "you get a structured payout you couldn't on your own."

 

It must be the Jews, as usual!