A non-principal protected product; its gives its holder an enhanced capped or fixed coupon (yield) against giving up potential upside gains of the underlying asset. Investing in such a note centers on a fairly bullish expectation on the underlying asset over the lifespan of the product. However, the main source of risks associated with it is the lack of principal protection (and hence it belongs to the breed of non-principal protected products). In other words, it exposes its holder to the risk of losing the capital invested in purchasing and holding it over the course of its life).

Yield enhancement notes come in many forms including fixed coupon notes, reverse convertible notes, booster capped notes, and autocallable airbag notes.