The document outlines selected purchase considerations for investment notes linked to the performance of the Brazilian Real against the U.S. Dollar. It details the potential returns, risks of principal loss, exposure to currency fluctuations, and tax treatment uncertainties. The notes offer a 5% return if the currency return is above 0% and a 28.5% return if above 3%. If the currency return is below the barrier level of -15%, investors may lose principal. The tax treatment is uncertain, with potential for ordinary income or capital gain classification, depending on IRS rulings and elections under Section 988 of the Internal Revenue Code.
documents/vol00010-efta01344609-pdf.pdf
{"key_people":["Morrison & Foerster LLP"],"document_date":"2013-10-29","document_type":"financial","key_locations":["U.S.","Brazil"],"document_subtype":"investment notes","key_organizations":["Internal Revenue Service (IRS)"],"reference_numbers":["Section 988","Section 1256","Section 1092"]}