Bonds that have payments determined at least in part by credit events (e.g., default) at a different firm. These also refer to asset-backed securities which were issued against the loan portfolio. Credit-linked notes exist in a number of forms, but all of them contain a link between the return they pay and the credit-related performance of the underlying asset. A standard CLN is a security, usually issued by an investment-graded entity that has an interest payment and fixed maturity structure similar to a vanilla bond. The performance of the CLN, however, including the maturity value, is linked to the performance of a specified underlying asset or assets as well as that of the issuing entity. CLNs are usually issued at par. They are often used as a financing vehicle by borrowers in order to hedge against credit risk; CLNs are purchased by investors to enhance the yield received on their holdings. Hence, the issuer of the CLN is the protection buyer and the buyer of the note is the protection seller.