A credit linked note pays for taking a single, well-defined risk: that one named company does not default. This one is written on Jaguar Land Rover. As long as no credit event occurs, it pays a monthly coupon and returns capital in full at maturity in December 2028.
The appeal is the pick-up. Jaguar Land Rover Automotive PLC’s own 5.875% 20/28 bond currently trades at 6.38%. Taking the credit through this note yields 10.60% — 4.22% more a year, earned through the note structure.
Key product details
- ISIN: XS2387125995
- Underlying: Jaguar Land Rover (United Kingdom)
- Coupon: 0.883% monthly per the factsheet (10.60% p.a.), coupon type guaranteed
- Original duration: 67 months
- Observation frequency: Monthly
- Day count convention: 30/360
- Currency: USD
- Delivery: Cash
- Expected redemption date: December 20, 2028
What happens if a credit event occurs
Coupons stop and the investor receives the recovery value determined by ISDA at maturity, rather than par. This is the single risk the yield is paid for, and it is the one to weigh.
Where the note stands
The note last traded at 104.06% and has paid 34.477% in coupons since issue. The factsheet notes that Jaguar Land Rover has had a turbulent 38 months: a cyberattack in September 2025 halted production for over a month at a cost of £196 million, US tariffs in April 2025 delayed shipments, and fiscal 2026 profit fell 99.44%, from $3.3 billion to $18.7 million. Against that, volumes rose in Q4 2025 as production normalised and the company remains committed to £24 billion of EV investment through 2029.
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