The potential return from this type of notes is dependent on the performance of an underlying financial instrument.
Typical financial instruments linked to these notes include equities, interest rates, credit, market indices, fixed income instruments, foreign exchange and a combination of these. They provide you with the potential to earn a higher yield and return of your principal when held to maturity. They are usually issued by a financial institution and investors are exposed to the issuer’s credit risk amongst other risks.
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