The 7% USA Protect Reverse Convertible Bond combines twofixed interest payments of 7% with a partial safety mechanism for the invested capital down to the barrier the barrier of 59%. The interest amount is paid out annually, regardless of the performance of the three underlying shares (Apple Inc., AT & T Inc. and Microsoft Corp.).
The share basket of the Protect Reverse Convertible Bond consists of three heavyweights of the US-American economy:
- California-based multinational technology group Apple Inc. is active in hardware and software development and is known for products such as the iPhone or iPad.
- The Texas-based AT & T Inc. is the largest telecommunications company in the world and the leading mobile and fixed line operator in the United States.
- The international hardware and software manufacturer Microsoft Corp. Washington, DC is best known for its Windows operating system and its Office software suite
The certificate is redeemed at 100% of the nominal value at the maturity date (October 2021), provided that the daily closing price of each of the three underlying shares always quotes above the respective barrier of 59% during the observation period (daily observation).
If one of the barriers is touched or undercut by the daily closing price of at least one of the underlying shares and at least one of these shares closes below its strike 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).
The issue price amounts to 100 % (nominal value EUR 1,000) within the subscription period. Further information as well as the Key Information Document please find on Product Page.
Reverse Convertible Bonds - explained in an easy way
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The Structured Products Team of Raiffeisen Centrobank