MLDs
Understanding Market Linked Debentures (MLDs)
Learn how Market Linked Debentures work, how their returns are linked to an underlying market or reference asset, and the key risks investors should understand before investing.
A Market Linked Debenture (MLD) is a debt instrument whose payout is linked to the performance of an underlying market indicator, index, security or other reference asset, as specified in the product terms.
The payout structure is defined in the offer document and may include conditions that must be met by the underlying reference on stated observation dates. Returns are not guaranteed and depend on the structure and the performance of that reference.
MLDs involve market, credit, liquidity and other product-specific risks. Listing does not assure an active secondary market, and the issuer's ability to pay remains a credit consideration.
Investors should review the applicable offer document, payout structure, tenure and risk factors carefully before investing. Eligibility, risks and product terms apply.
This article provides general educational information, not individual investment, tax or legal advice. Eligibility, risks and product terms apply. Product suitability depends on individual circumstances.