It stands for callable yield note; a medium term note that offers yield enhancement with a contingent buffer, on one underlying or more (references), subject to none of the underlyings hitting or trading through their respective barriers. At maturity, if none of the underlyings ever breach its barrier level, the holder will receive a redemption amount equal to par (the note’s par value); otherwise, the redemption amount is the percentage return of the worst performing underlying. Moreover, the issuer has the right to call the note for early redemption at par on any coupon payment date. The coupon for the period in which the note is called will be paid to the holder.

Callable yield notes are particularly instrumental for investors who have a fairly bullish view on the underlying(s).