Credit Linked Notes

Credit linked notes can be tailored for the investor (participation in alternative asset classes such as real estate)

Attractive fixed coupon, as well as a variable bonus coupon for additional profit participation

Optimized solution, whereby the reference entity, the term and the currency can be selected independently of each other

Investors without access to the credit derivatives markets can participate in them through CLNs

Credit linked notes generally have a higher yield than corporate bonds

Standard terms of 3, 5, 7 and 10 years (deviations can also be mapped)

Credit Linked Note

Credit-Linked Notes (CLN) provide access to a variety of reference borrowers and can increase the rate of return of your bond portfolios. The additional credit risk taken can be compensated with an attractive coupon.

Opportunities

CLNs can be tailor-made for the investor (participation in alternative asset classes, such as real estate)

Attractive fixed coupon, as well as a variable bonus coupon for an additional success participation

Optimized solution in which the reference debtor, the term and the currency can be tailored independently to the investor

Investors without access to the credit derivative markets can take part through CLN‘s

CLN‘s usually have a higher return than corporate bonds

Standard terms of 3, 5, 7 and 10 years (deviations can also be displayed)

Risks

Since CLN‘s are often tailor-made products, these are not always easy tradable. Under certain circumstances, the liquidity risk in CLN’s can be greater than in the bonds of the reference entity.