Equity-linked Eurobonds
Equity-linked Eurobonds
Equity-Linked Eurobond
A bond denominated in a currency other than the one used in the country where it is issued that offers a return based on the performance of some stock or stock index. That is, the equity-linked Eurobond generally offers a small, guaranteed return with the possibility of a larger return dependent on the underlying stock or index. Equity-linked Eurobonds combine some of the advantages of both stocks and bonds, and also can help an investor hedge against foreign exchange risk.