The 10% Coinbase/Block Plus Reverse Convertible Bond combines a fixed annual interest interest payment of 10% with a partial safety mechanism for the invested capital down to the barrier of 59% (only observed at maturity). The interest amount is paid out, regardless of the performance of the twounderlying shares (Coinbase Global Inc. and Block, Inc.).
The share basket of the Reverse Convertible Bond consists of two underlyings in the financial services sector:
- Coinbase Global Inc. is a regulated company that specializes in trading, transfer and custody of cryptocurrencies. To the private as well as institutional users, Coinbase‘s platform can offer a wide crypto product range.
- Block, Inc. formerly known as Square, Inc, is a financial services provider focused on mobile transaction among other things, the company develops point-of-sale software that provides digital receipts, inventory and sales reporting, analytics and feedback.
The certificate is redeemed at 100% of the nominal value at the maturity date (February 2024), provided that the closing price of each of the two underlying shares quote above the barrier of 59% of each respective strike on the final valuation date (observation only at maturity).
If the barrier of 59% of the respective strike is touched or undercut by the closing price of one or both of the underlying shares (Coinbase Global Inc. and Block, Inc.) at the final valuation date, the predefined amount of the worst performing share is delivered (percentage performance from the starting value to the closing price at the final valuation date).
Further information as well as the Key Information Document please find on the Product Detail Page.
Reverse Convertible Bonds - explained in an easy way
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The Structured Products Team of Raiffeisen Centrobank