Equivalent to a funded credit derivative, a security that has an embedded credit default swap. It allows the issuer to transfer some of the credit risk to credit investors. The issuer is not obligated to repay the debt in the event of default. The coupon payable on the CLN reflects the credit quality of both the issuer and the underlying reference entity(s). CLNs mature below par if any of the underlying reference entities suffers a credit event during the life of the issuance.