Hello! Equity linked notes (ELNs) are a type of debt security that is linked to the performance of an underlying equity asset. They are issued by banks and other financial institutions, and they offer investors the potential for higher returns than traditional debt securities. An ELN is a hybrid security that combines features of both debt and equity. It pays a fixed coupon rate, like a bond, but its principal value is linked to the performance of an underlying equity asset. The issuer agrees to pay the investor a predetermined amount at maturity, which is based on the performance of the underlying asset. For example, if an ELN is linked to the S&P 500 index, then at maturity, the investor will receive either their principal plus any gains in the index or their principal minus any losses in the index. This means that if the index rises over time, then the investor will receive more than their original investment; however, if it falls over time, then they will receive less than their original investment. ELNs can be attractive investments for investors who want exposure to equity markets without taking on too much risk. They offer investors a way to diversify their portfolios while still earning a fixed income from interest payments. Additionally, since ELNs are typically issued with maturities of five years or less, they can provide investors with short-term capital appreciation opportunities as well as long-term capital growth potential. In summary, equity linked notes are hybrid securities that combine features of both debt and equity investments. They offer investors potential for higher returns than traditional debt securities while also providing them with exposure to equity markets without taking on too much risk.