It stands for yield enhanced stock; a type of equity derivative; by definition, it is a type of convertible preferred that has a preset cap on upside potential (capital appreciation), a zero issue premium, and a better yield advantage over common stock. This equity hybrid was originally developed and issued by Goldman Sachs (1992).
Yield enhanced stock (YES) mandatorily converts into common stock at maturity where the holder receives a higher current dividend than that of the underlying common stock. However, this participation in stock price appreciation is capped.
It is also known as yield enhanced equity.
