Yield Enhancement Notes generally provide a fixed coupon that is very similar to a form of income product, like simple bonds.
In the same manner like bonds, these Notes pay coupon no matter how the market develops, whether the market is down or up, investor will receive fix coupon.
Typical financial underlyings linked to Yield Enhancement are equities in many cases but interest rates, indices and foreign exchange also often used.
The underlying assets composed of several stocks or other instruments and very often with low correlations between some of these assets in order to achieve a higher return. This is an example of classical product based on a worst of function.

In the article A Simple Guide to Structured Products there is a Risk-Return diagram that shows the risk profile of Yiled Enhancement notes.
They are alike participation notes and offer greater return than Capital protection Notes. This is because almost all the time these notes exposed to the same risk as a direct investment in the underlying in case of downtrend.

The main advantage over traditional fix coupon bonds is that coupon paid is higher.
These type of investment is suitable for those who expect the market to be neutral or positive.
If the market is neutral, the price will not change while fix coupon will be paid.
When market is positive, the price will change and the coupon is paid as well.
Sometimes, if the price changed too quickly in the upward trend, there is a good reason to exercise the note before getting coupon.

Not all the notes from Yield Enhancement can offer fix coupon all the time until expiry.
Sometimes the coupon can be lost in the case if a predefined barrier is triggered.
Therefore it is a good practice to read very carefully Term Sheet before investing in any kind of structured products.
The main reason is to understand risk profile and additional features like barriers, caps etc.

In order to understand the main features of Yield enhancement products, below provided different payoffs.

Advantages:
-Both bullish and sideway market guarantees the positive return
-Fix coupon
-Early redemption(autocallable) future
-Conditional capital protection future up to the barrier

Disadvantages:
-No principal guarantee
-investors face downside risk and may lose part or all of their original investment.Additionally, investors may receive shares of stock at a value below the original principal amount at maturity.
-Investor has limited potential due to cap feature
-Coupon payments and payment at maturity is subject to creditworthiness of the issuer.