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Commodity-linked note
A note or other similar debt instrument whose redemption value and sometimes interest rate are pegged to the price of a commodity or the value of a commodity index.
The value of the bond is linked to the price of the related commodity, so that the buyer expects the return to be based in part on the performance of the underlying commodity price or index.
Translations
Synonyms and variations
- Commodity-backed bond
- Commodity-linked bond