header bg

Scan QR code or get instant email to install app

Question:

The fact that ELNs are generally principal protected means that investors are most likely protected from:

A A decline in the value of the index since issuance.
explanation

Equity‐linked notes guarantee investors repayment of 100% of principal even if the value of the index has fallen since issuance. However, the principal payment is still subject to credit risk of the issuer. If the issuer defaults, the investor may not receive anything even if the underlying index has increased in value.

Related Information

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

*