For clients in booking center Switzerland only
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For clients in booking center Switzerland onlyEquity Airbag Certificate
Examplary Underlying: Single Stock
In general, the Airbag Certificate allows you to have participation in the performance of the underlying and can provide an enhanced return compared to a direct investment in slightly negative market conditions.
The payout profile is for illustrative purposes only and is based on the assumption that no exceptional cancellation will occur, in accordance with the issuer’s product documentation.
Main features of a sample product
Currency
CHF, conversion in shares
Term
1 year
Return
unlimited
Participation
100% in the underlying performance since the pricing date
Capital
at risk below the strike 90%, downside participation of 111%
You may consider an investment in this product, if
- You are familiar with both structured products and equity markets
- You intend to be invested in this product until its redemption date
- You are comfortable being exposed to any negative performance of the underlying
- You are comfortable with a physical delivery of the underlying on the redemption date
- 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
- Potential for upside participation in the positive return of the underlying on the expiration date
- Enhanced returns compared to a direct investment in slightly negative markets
- Features include:
- Cap (limits the upside participation)
- Leverage (enhances the upside participation)
Summary of main product-specific risks
- No dividends will be paid during the lifetime of the product
- Redemption potentially linked to the underlying if it closes below the respective loss threshold level on the expiration date. In the worst case scenario, this product becomes worthless and the investor will lose all of the invested capital.
- If the currency of the product is different from your reference currency, the return may increase or decrease as a result of currency fluctuations
- You are fully exposed to the default risk of the issuer / guarantor. In the worst case a default of the issuer / guarantor can lead to a loss of the entire invested capital
Scenario Analysis (Kopie)
Return on investment (ROI) on the redemption date
Assumptions: Reference price 100%, strike level 100%, loss threshold level 90%, upside participation 100%, downside participation 111.11%
| Underlying on the expiration date | ROI (redemption amount) | |
|---|---|---|
| Level | Change % | |
| 150% | 50% | 50% |
| 140% | 40% | 40% |
| 130% | 30% | 30% |
| 120% | 20% | 20% |
| 110% | 10% | 10% |
| 100% | 0% | 0% |
| 90% | -10% | 0% |
| 80% | -20% | -11.11% |
| 70% | -30% | -22.22% |
| 60% | -40% | -33.33% |
| 50% | -50% | -44.44% |
Scenario 1: Upside participation
Scenario 2: Outperformance compared to a Direct Investment
If the underlying does not close below its respective loss threshold level on the expiration date and the value of the performance of the underlying on the expiration date compared to its initial level is greater than the strike level, you will benefit from the upside performance of the underlying.
Scenario 2: Outperformance compared to a Direct Investment
As long as the underlying does not close below its respective loss threshold level on the expiration date, you will achieve a predetermined repayment equal to 100% of the nominal value and consequently outperform a direct investment in the underlying basket in slightly negative market conditions.
Scenario 3: Downside Risk
There is no protection against falling prices if the underlying closes below its respective loss threshold level on the expiration date. You will be fully exposed to any negative performance of the underlying compared to its loss threshold level considering the respective downside participation but outperform a direct investment in the underlying compared to its strike level. In a worst case scenario, this Airbag Certificate becomes worthless and you would lose all of the invested capital.