Talk Your Book: The Next Generation of Income Strategies

Structured-note ETFs like JELM/JELH generate 10-13% coupons by selling tail-risk insurance, but convert to equity-like losses if deep barriers (40-50%) are breached.

• Auto callables as insurance: Mike Laughlin frames these ETFs as selling insurance against tail risk—investors collect a coupon (premium) for underwriting a downside barrier, typically 40-50% below inception price.
• Two Janus Henderson ETFs: JELM (Janus Equity Linked Moderate, target SOFR+3-5%, ~10% weighted coupon, beta ~0.3) and JELH (Equity Linked High Income, target SOFR+6-11%, ~13.4% coupon, beta ~0.5) hold 25-30 auto callable notes on individual S&P top 70-100 stocks.

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