The Progress of Credit Linked Note Based on Products from Different Regions

Abstract

Credit Linked Note (CLN) is a kind of structured financial derivative that is booming. Based on analysis and comparisons toward different kinds of CLN products from different countries, the current status of CLN products has been introduced. Specifically, the characteristics (e.g., rates and periods) are discussed, showing CLN has been experiencing significant progress. Subsequently, the potential risks of the CLN are discussed and evaluated from the view of the CLN issuer, reference entity, and eligible investment goods. These results shed light for investors who are going to make an investment or are interested in CLN. According to the analysis and evaluation, CLN can be considered to have a bright future.