The potential return from a Yield Enhancement Note is dependent on the performance of an underlying financial instrument.
Typical financial instruments linked to a Yield Enhancement Note include equities, interest rates, credit, market indices, fixed income instruments, foreign exchange and a combination of these. Earn potential higher yields from Yield Enhancement Notes by taking a view on the underlying financial instrument. They are usually issued by a financial institution and investors are exposed to various risks including the issuer’s credit risk.
Yield Enhancement Notes are only recommended for investors with an appropriate risk appetite as they carry significant risks.