Business and Personal Finance Dictionary

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• CREDIT LINKED NOTE
  
  Definition: A note that pays interest and repays principal that depends on a credit event, such as bankruptcy and default. Example: Swiss Bank Corporation issued global floating rate notes, which it would redeem for 51% of par value or 100% of the value of a reference security (a similar bond from the same issuer, less the credit exposure), if a particular credit event occurs. Application: The usual, speculation and hedging. Pricing: Risk Management: Comment: Source: "Swiss Bank Ready to Offer Big Note Issue," WSJ, 9/7/97.
  
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