Possibility to earn a high return with a limited risk

Equity index-linked bonds are structured products that combine the high potential returns of equity with the limited risk of debt instruments. Typical underlying securities for the capital guaranteed products are equity index, index baskets or equity baskets.

When stock market trends are positive, the investor receives a return that is tied to the trends in the stock market. The capital guarantee means that the issuer of the index loan will pay back at least the initial investment on the date of maturity. When stock markets are down, the principal protection of equity index-linked bonds means that the investor suffers no losses on their initial investment.