| Yieldenhanced products |
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The category name refers to the instruments' ability to offer a yield-enhancing return in a slightly negative or stagnant market, or - in some cases - in a slightly positive market, compared to a return from an investment made directly in the underlying asset.
The instruments can be described either as paying a high "interest rate", or giving the investor the opportunity to aquire the underlying asset at a "discount".
In exchange for the high "interest rate" or the "discount", the investor give up the right for parts of the upside return in a rising market, or part of the proceeds in a rising market.
How much "interest" or "discount" you get and how much return you give up in the event of a positive market development, depends on the type of instrument you chose and its conditions.
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