The profit potential is limited to the Coupon Amounts. As long as the Underlying closes above the Strike Level on the Expiration Date, your maximum profit potential will be achieved by receiving the Denomination and the Coupon Amounts.
For clients in booking center Switzerland only
Finder for structured products
For clients in booking center Switzerland onlyEquity Reverse Convertible
Yield enhancement
Examplary Underlying: Single stock
In general, Equity Reverse Convertibles are structured solutions that investors can use both to produce additional income while waiting to potentially purchase the underlying stock at lower levels, and to generate yield in equity markets.
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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
USD, conversion risk in shares
Term
1 year and 2 days
Return
5% p.a. paid semi-annually
Participation
no additional participation
Capital
at risk below strike 80.89%
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 are looking for a fixed return paid at regular intervals
- 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 underlying to close at or below the strike level on the expiration date
- 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 CHF (Swiss Franc). If your reference currency is not CHF, 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
- Fixed coupon payments independent of the development of the underlying
- Redemption on the redemption date will be 100% of the denomination if the underlying closes above the strike level on the expiration date
- Outperformance compared to a direct investment in the underlying, if the coupon amounts are higher than the positive performance of the underlying plus any dividends or other income paid thereon
Summary of main product-specific risks
- Return is limited to the coupon amounts
- You will not receive the benefit of dividends or other income that may be paid on the underlying
- A loss can result if the underlying closes at or below the strike level on the expiration date
- You are fully exposed to the default risk of the issuer
Scenario Analysis
Return on investment (ROI) on the redemption date
Assumptions: Reference price USD 161.56, strike level USD 130.69, Coupon 5% p.a.
| Underlying on the expiration date | |||
|---|---|---|---|
| USD | Change % | ROI (redemption + coupon) | ROI % |
| USD 193.87 | +20.00% | USD 1'000.00 + USD 50.27 |
5.03% |
| USD 177.72 | +10.00% | USD 1'000.00 + USD 50.27 |
5.03% |
| USD 161.56 | 0.00% | USD 1'000.00 + USD 50.27 |
5.03% |
| USD 145.40 | -10.00% | USD 1'000.00 + USD 50.27 |
5.03% |
| USD 130.69 | -19.11% | 7 shares* + USD 50.27 |
5.03% |
| USD 129.25 | -20.00% | 7 shares* + USD 50.27 |
3.92% |
| USD 124.12 | -23.17% | 7 shares* + USD 50.27 |
0.00% |
| USD 113.09 | -30.00% | 7 shares* + USD 50.27 |
-8.44% |
| USD 96.94 | -40.00% | 7 shares* + USD 50.27 |
-20.80% |
*plus fractional entitlements if applicable