Bonus certificates with a deep barrier offer a possible strategy in order tocircumvent short-term uncertainties in the Eurozone equity benchmark and at the same time take advantage of longer-term opportunities
The new 3% Europe Bonus & Safety 2 certificate, an investment product with a high safety buffer and an annual fixed interest rate of 3%, is available to investors who deem price slumps in the EURO STOXX 50® index of more than 51% in the next three years unlikely to occur.
The indicative barrier (1,429.38) of the certificate related to the price of the index as of May 11 (10:00) at 2,917.11 is still significantly below the low of the EURO STOXX 50® index marked in the financial market crisis 2009 (1,764.49 as of March 9, 2009).
At the maturity date (June 2023) the certificate is redeemed at 100% of the nominal value, provided that the underlying index always quoted above its barrier of 49% of the starting value during the observation period.
In case the barrier has been touched or undercut, redemption at the maturity date is effected according to the performance of the underlying index (percentage performance from the starting value to the closing price at the final valuation date). Even if the barrier is touched or undercut investors do not participate in price increases of the index above the starting value.
The issue price amounts to 100% (nominal value EUR 1,000) within the subscription period. Further information as well as the Key Information Document can be found on the product page.
Bonus Certificates – explained shortly:
For any additional information you may require do not hesitate to contact us on +43 1 515 20-484.
The Team Structured Products of Raiffeisen Centrobank