The profit potential is limited to the Strike Level. As long as no Barrier Event occurs, your maximum profit potential will be achieved by receiving an amount equal to the Strike Level. The same return will be achieved upon occurrence of a Barrier Event, but only if the Underlying recovers to close above the Strike Level on the Expiration Date.
For clients in booking center Switzerland only
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For clients in booking center Switzerland onlyEquity Barrier Discount Certificate
Yield enhancement
Examplary Underlying: Equity Index
In general, Equity Barrier Discount Certificates provide an optimized return under stable or slightly positive/negative market conditions. This product offers a way to invest indirectly in the underlying at a discount. The discount can compensate for giving up any participation in the appreciation of the underlying above the strike level and for the downside risk of the underlying on the expiration date.
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
EUR, cash settled
Term
1 year and 2 days
Return
max. redemption EUR 3'344.33 (max. return 2.03% p.a.)
Participation
no additional participation
Capital
at risk below issue price EUR 3'277.3787 (discount 2.00%) subject to barrier EUR 2'627.97 (continuous observation)
You may consider an investment in this product, if
- You look for a way to enhance yield in sideway markets
- 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 the negative performance of the underlying, without benefiting from a positive performance of the underlying above the strike level
- You do not expect the barrier level of the underlying to be touched or breached at any time on any exchange business day until and including the expiration date (barrier event)
- You are comfortable with a physical delivery of the underlying on the redemption date that is linked to the performance of the underlying on the expiration date which value may be considerably less than the capital invested
- You wish to be invested in EUR (Euro). If your reference currency is not EUR, 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
- Allows to invest indirectly in the underlying at a discount
- Redemption on the redemption date will be equal to the strike level if no barrier event has occurred, or a barrier event has occurred and the underlying closes above the strike level on the expiration date
- Outperformance compared to a direct investment in the underlying, if the return achieved by the product is higher than the positive performance of the underlying plus any dividends or other income paid thereon
Summary of main product-specific risks
- Upside potential is limited to the strike level
- A loss can result if a barrier event has occurred and the underlying closes below the issue price on the expiration date
- In a worst case scenario the product becomes worthless and you will lose the capital invested (no capital protection)
- You are fully exposed to the default risk of the issuer
Scenario Analysis
Payoff diagram on the redemption date
Assumptions: Reference price EUR 3'344.33, Strike level EUR 3'344.33, Issuer price EUR 3'277.38, Barrier EUR 2'627.97
| Underlying on the expiration date | |||
|---|---|---|---|
| EUR | Change % | ROI (redemption) if no barrier event occurs | ROI (redemption) if barrier event occurs |
| EUR 4'013.20 | +20.00% | 2.04% (EUR 3'344.33) |
2.04% (EUR 3'344.33) |
| EUR 3'678.76 | +10.00% | 2.04% (EUR 3'344.33) |
2.04% (EUR 3'344.33) |
| EUR 3'344.33 | 0.00% | 2.04% (EUR 3'344.33) |
2.04% (EUR 3'344.33) |
| EUR 3'277.38 | -2.00% | 2.04% (EUR 3'344.33) |
0.00% (EUR 3'277.38) |
| EUR 3'009.90 | -10.00% | 2.04% (EUR 3'344.33) |
-8.16% (EUR 3'009.90) |
| EUR 2'675.46 | -20.00% | 2.04% (EUR 3'344.33) |
-18.37% (EUR 2'675.46) |
| EUR 2'627.97 | -21.42% | n.a. | -19.81% (EUR 2'627.97) |
| EUR 2'341.03 | -30.00% | n.a. | -28.57% (EUR 2'341.03) |
| EUR 2'006.60 | -40.00% | n.a. | -38.77% (EUR 2'006.60) |