________ is a security issued by an investment banking firm or another issuer (typically a special purpose vehicle), which has credit risk to a second issuer (called the reference issuer), and the return is linked to the credit performance of the reference issuer.

Question

Quizplus · Accepted Answer

The definition given is that of a credit-linked note (CLN). A structured finance operating company (SFOC) is a type of special purpose vehicle, but it is not directly related to the given concept. An equity-linked note (ELN) is linked to the performance of an underlying equity, not to a reference issuer's credit performance. A credit-linked debenture (CLD) is not a widely used term and is not commonly used to describe this type of security.

________ Is a Security Issued by an Investment Banking Firm