Equity Linked Note (ELN)
What is an Equity Linked Note (ELN)?
How Does an Equity Linked Note (ELN) Work?
An ELN is a principal-protected instrument generally intended to return 100% of the original investment at maturity, but deviates from a typical fixed-coupon bond in that its coupon is governed by the appreciation of the underlying equity.
An ELN has fixed-income features, like principal protection, as well as equity market upward exposure. It is structured by combining the economics of a long call option on equity with a long discount bond position. The investment structure generally offers 100% principal protection. The final payment at maturity or coupon is determined by the appreciation of the underlying stock.
Why Does an Equity Linked Note (ELN) Matter?
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.