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PM Conditional Coupon Reverse Convertible (Express Zertifikat)

Renditeoptimierung

Examplary Underlying: Precious Metal

In general, PM Conditional Coupon Reverse Convertible (Express Certificates) can provide an attractive payout in stable market conditions. The payout and early redemption are conditional on the performance of the underlying and may compensate for the risk of being exposed to the downside risk of the underlying.

Factsheet (PDF)
Das Auszahlungsprofil dient zu Illustrationszwecken und basiert auf der Annahme, dass keine aussergewöhnliche Beendigung, gemäss Produktdokumentation des Emittenten, stattfindet.

Hauptmerkmale eines Beispielproduktes

Currency

USD, cash settled

Term

1 year, subject to early redemption

Return

6% p.a. exit rate, payable only in case of early redemption

Participation

no additional participation

Capital

at risk below strike 100%, subject to barrier 75%

You may consider an investment in this product, if

  • You are looking for a way to enhance yield in sideways markets
  • You are familiar with both structured products and precious metals markets
  • You are comfortable that the product may end early, and being exposed to a reinvestment risk
  • You are comfortable being exposed to the negative performance of the underlying
  • You do not expect the barrier level of the underlying to be touched or breached (barrier event)
  • You wish to be invested in the investment currency of the product. If your reference currency is not equal to the investment currency of the product, the return may increase or decrease in reference currency terms as a result of exchange rate fluctuations.

Summary of main product-specific benefits

Summary of main product-specific risks

  • Attractive exit rate for each observation period if redeemed early
  • Redemption will be 100% of nominal value if barrier is not touched or breached
  • Early redemption feature provides a cash-out opportunity at regular intervals
  • Outperforms direct investment in a sideways or slightly positive market

Summary of main product-specific risks

  • Potential return limited to exit rate payment
  • No exit rate payment in case of no early redemption event
  • In the event of early redemption you might not be able to invest the redemption amount at the same conditions (reinvestment risk)
  • Redemption linked to the underlying if barrier is touched or breached
  • If the currency of the product is different from your reference currency, the return may increase or decrease as a result of currency fluctuations
  • The relatively long tenor increases the likelihood of a barrier event
  • You are fully exposed to the default risk of the issuer. In the worst case a default of the issuer can lead to a loss of the entire invested capitalYou are fully exposed to the issuer's default risk. In the worst case, default of the issuer can lead to a loss of the entire invested capital.

Scenario Analysis

Return on investment (ROI) on the redemption date

Assumptions: strike level 100%, exit rate 6% p.a., early redemption level 100%, barrier level 75%, *strike date

a) ROI in the case of an early redemption event


Observation
date		 Underlying in %
of reference price		 Redemption ROI (redemption + exit
rate)
SD* + 2 months at or above 100%
below 100%		 Yes
No		 1% (100% + 1%)
Go to next period
SD* + 4 months at or above 100%
below 100%		 Yes
No		 2% (100% + 2%)
Go to next period
SD* + 6 months at or above 100%
below 100%		 Yes
No		 3% (100% + 3%)
Go to next period
SD* + 8 months at or above 100%
below 100%		 Yes
No		 4% (100% + 4%)
Go to next period
SD* + 10 months at or above 100%
below 100%		 Yes
No		 5% (100% + 5%)
Go to next period
SD* + 12 months (expiration date) at or above 100%
below 100%		 Yes
Yes		 6% (100% + 6%)
Go to next table
Nur zu Illustrationszwecken. Quelle: UBS

b) ROI in the case of no early redemption event


Observation
date		 Underlying
in % of reference price		 ROI (redemption +
exit rate) if
barrier is touched		 ROI (redemption
+ exit rate) if
barrier not
touched
SD* + 12 months (expiration date) 100% +6% (100% + 6%) +6% (100% + 6%)
  99% -1.00% (99% +
0%)		 0.00% (100% +
0%)
  90% -10.00% (90% +
0%)		 0.00% (100% +
0%)
  80% -20.00% (80% +
0%)		 0.00% (100% +
0%)
  70% -30.00% (70% +
0%)		 n.a.
  65% -35 % (65% +
0%)		 n.a.
  60% -40.00% (60% +
0%)		 n.a.
  50% -50.00% (50% +
0%)		 n.a.
Nur zu Illustrationszwecken. Quelle: UBS