Examples of Equity Linked Notes in a sentence
Fluctuations in the price of the underlying Equity (or underlying Equity Basket), ADR/GDR (or underlying ADR/GDR Basket) or Preference Share will affect the value of the Equity Linked Notes or Equity Basket- Linked Notes.
Whilst interests in ETFs are traded on an exchange and are therefore valued in a similar manner as a share traded on an exchange, certain provisions related to Equity Linked Notes that are linked to ETF shares are similar to the provisions related to funds.
An investment in Equity Linked Notes that are linked to ETF shares will entail significant risks not associated with an investment in a conventional debt security.
Even if the price, level or value of the relevant underlying share or index rises or falls there may be a reduction or increase, as the case may be, in the value of Equity Linked Notes or Inflation Linked Notes due to the other value determining factors.
Investments in the Equity Linked Notes or Inflation Linked Notes may involve interest rate risk.
Any prospective investor who purchases Equity Linked Notes or Inflation Linked Notes is relying upon the creditworthiness of the Issuer and the Guarantor and has no rights against any other person.
The interest rate level may fluctuate on a daily basis and cause the value of the Equity Linked Notes or Inflation Linked Notes to change on a daily basis.
It is possible that while the relevant underlying security or index is increasing in value, the value of the Equity Linked Notes or Inflation Linked Notes may fall.
Equity Linked Notes (ELNs), Credit Linked Notes (CLNs) and similar structured instruments involve a counterparty writing a contract which defines the principal value and the payoff which is intended to move in line with the underlying security specified in the contract.
On redemption of Equity Linked Notes that are linked to ETFs, investors will receive an amount (if any) determined by reference to the value of the interests in an ETF or interests in a basket of ETFs. Accordingly, an investment in Equity Linked Notes that are linked to ETFs may bear similar market risks to a direct ETF investment, and investors should take advice accordingly.