Investor Account Access
Investor access to Shareowner accounts and Closed End Funds accounts.
Thursday 18 May 2023
May 2023 | By incorporating both a fixed income and equity component, equity-linked notes (ELNs) can allow investors to benefit from higher interest rates while also participating in equity market performance. Learn why ELNs can be attractive investments in today’s economic environment.
01 | Investors considering opportunities for capital appreciation and income generation may wish to consider adding equity-linked notes (ELNs) to their portfolios.
02 | By providing regular coupon payments and offering flexibility relating to the underlying shares, we believe ELNs can be attractive to a range of investors.
03 | Learn more about the potential opportunities and risks involved with investing in ELNs.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of May 18, 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi US and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. Amundi Asset Management US is the US business of the Amundi Asset Management group of companies.
The current US debt ceiling was reached in January and the US Treasury warned that it would run out of cash to meet its expenditure commitments around June 1st, although a precise date is impossible to predict. The Republicans’ initial proposal asked for spending cuts to the tune of a 1% limit on the annual growth of nominal government expenditure over the next ten years. This fiscal contraction, along with a tight monetary stance, would be negative for economic growth. However, a default would be even worse for the economy.
Our assessment is that most banks are much better prepared to withstand financial volatility today than they were in 2008-9. As a result of the systematic application of much greater regulatory oversight, US banks have much higher levels of equity capital, better funding and liquidity, less leverage and much lower asset risk. With the potential for stronger supervision and regulation across the sector, we suggest investors carefully select securities from larger, well-capitalized banks with diversified business models and conservative lending strategies.
US Federal Reserve Chair Jerome Powell addressed concerns about the banking system, stating that conditions have broadly improved since early March, and re-emphasizing that Fed focus will now be on credit tightening. He said the Fed needs a few months of data to determine if monetary policy is sufficiently restrictive and continued to reiterate the importance of lifting the debt ceiling. While the financial markets may become excited about the prospect of the Fed moving to or near a pause, we would advise caution regarding any near-term course reversal by the Fed since the incoming inflation and economic data are not likely to support rate cuts.
Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your financial professional or Amundi US for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our literature section.
Securities offered through Amundi Distributor US, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer mutual funds, Member SIPC.
Not FDIC insured | May lose value | No bank guarantee Amundi Asset Management US, Inc. Form CRS Amundi Distributor US, Inc. Form CRS