Equity-linked CDs are issued by a bank, so return of principal is guaranteed by the FDIC.
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Answering a yearning for reward without risk, investment banks are rebaking a 17-year-old idea called equity-linked notes.
Another batch of can't-lose stock investments came in 1992, when commercial banks sold equity-linked, principal-protected certificates of deposit.
Alibaba intends to finance the repurchase through a combination of its own cash resources, debt, equity and equity-linked financing.
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Mutual funds and equity-linked products will be the hot products of tomorrow, as the equity culture spreads through Germany and across Europe.
While it has a 15% market share in traditional fixed-annuity life insurance products, it has less than 2% of Germany's mutual fund market-and virtually nothing in equity-linked variable annuities.
But the worry is that homebuyers were not made sufficiently aware of the risks they were taking when they took out equity-linked endowment policies to pay off their mortgages.
In the 1980s Japanese companies raised cheap equity-linked debt to build lots of factories, shops and so forth in the expectation that the economy would continue to grow at a fair clip.
It has regained its number-one position advising companies on mergers this year, according to Bloomberg, and the firm has also climbed back to the top of the Wall Street heap in managing equity and equity-linked offerings.
Nearly two weeks ago, Nomura analyst Alastair Syme floated what looked like a novel idea at the time: with debt financing appearing expensive and asset sales taking time, oil giant BP may consider an equity-linked financing backed by a sovereign wealth fund.
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Mr Takenaka also wants it to buy less conventional assets such as exchange-traded funds (index-linked equity funds).
Take Bank of America's Minimum Return Eagles (the name, predictably, is a tortured acronym--Equity Appreciation Growth LinkEd Securities).
Take Bank of America (nyse: BAC - news - people )'s Minimum Return Eagles (the name, predictably, is a tortured acronym--Equity Appreciation Growth LinkEd Securities).
The company actually gets smaller, because it has less assets and less equity. (Compared to LInked-In, for example, that grew larger by selling shares and increasing its cash asset.) Over time the cash disappears, and the equity disappears.
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As well as being coaxed into reducing leverage, the banks may face pressure to ditch some of their illiquid assets, such as mortgage-linked securities and private-equity stakes.
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The impact, however, will be partly softened for the City of London by giving more favourable treatment to long-term pay linked to the health of a bank, such as equity or bonds that are written down when an institution fails.
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