What payment structure is associated with straight cash pay notes?

Straight cash pay notes are characterized by a straightforward payment structure where interest, or coupon payments, are required to be made at regular intervals, typically in cash. The defining feature of these notes is that they mandate cash interest payments right from a specific point after issuance, which is usually within six months.

The timing of these payments is critical because it indicates that investors receive regular cash returns on their investment, providing an income stream. This structure contrasts with other types of notes, such as those that may defer payments or allow for optional payment methods. By requiring cash coupon payments starting six months post-issuance, straight cash pay notes offer immediate certainty in terms of cash flows for investors, which is attractive in fixed-income investment contexts. This clarity in cash flow is often part of the appeal when considering investment in these instruments.