Structured products linked to an underlying stock.
An ELI is a structured product linked to an underlying stock which delivers an enhanced yield* assuming that the underlying stock will not fall below a certain price. If the stock does fall below this price by a predetermined future date, investors will then receive shares of the underlying stock. ELIs are only recommended for investors with an appropriate risk appetite as they carry significant risks.
There are various types of ELI payoffs available such as Equity Linked Note, Fixed Coupon Note, Twin Win Note, Step Down Auto-Callable Note, among others.
ELI linked to a single stock is a short-term structured product involving an underlying option, which allows the issuer to deliver to the investor on maturity either cash or the underlying, depending on the fulfillment of certain conditions. Generally, a higher yield will be achievable if:
Potentially high yields are possible depending on investors choice of underlying stock and trade parameters.
Alternative investment entry
Investors waiting to buy a stock at a lower price can also potentially benefit from an enhanced yield* while waiting for the stock's price to drop.
Changes in the price, level or value of the underlying equity can be unpredictable, sudden and large. Such changes may result in the price or value of the ELIs moving adversely to your interest.
Issuer’s credit risk
ELIs are issued by financial institutions and investors are exposed to the issuer's credit risk.
For more information, contact your Wealth Manager or visit any of our branches.
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