Συχνές ερωτήσεις και γλωσσάριο
Καλώς ήρθατε στη σελίδα των πόρων μας, όπου στόχος μας είναι να σας παρέχουμε μια εκτενή ενότητα συχνών ερωτήσεων και ένα περιεκτικό γλωσσάριο που χρησιμεύει ως εισαγωγή στο περιβάλλον των δομημένων προϊόντων. Προσφέροντας σαφείς εξηγήσεις και απαντώντας σε συνήθεις ερωτήσεις, στοχεύουμε στην απομυθοποίηση των πολύπλοκων όρων και εννοιών που σχετίζονται με τα δομημένα προϊόντα και πιστοποιητικά, δίνοντάς σας τη δυνατότητα να περιηγηθείτε σε αυτό το δυναμικό τοπίο με αυτοπεποίθηση.
Συχνές ερωτήσεις
σχετικά με τα δομημένα προϊόντα
ΓΛΩΣΣΑΡΙΟ
σχετικά με τα δομημένα προϊόντα
Τα ενεργητικά διαχειριζόμενα πιστοποιητικά (AMC) είναι χρηματοπιστωτικά μέσα που απαιτούν ενεργή διαχείριση και βασίζονται σε δυναμικές επενδυτικές στρατηγικές. Η διαχείριση του υποκείμενου περιουσιακού στοιχείου γίνεται σύμφωνα με τις επενδυτικές κατευθυντήριες γραμμές που καθορίζονται από τον Σύμβουλο Επενδυτών.
An American option is a type of financial contract that can be exercised at any time until the maturity date, unlike a European option.
Ask price is the price at which a seller is willing to sell a security, such as a stock or bond, in the financial markets. It is the price quoted by market makers, brokers, or other sellers to potential buyers, and represents the lowest price at which the seller is willing to sell the security at that point in time. The ask price is typically displayed along with the bid price, which is the highest price a buyer is willing to pay for the security, and the spread, which is the difference between the bid and ask prices.
At the money is a term used in the context of financial derivatives, such as options and warrants, to describe a situation where the current market price of the underlying asset is roughly equal to the strike price of the option or warrant.
Autocall Trigger Level is a term used in structured products to describe a specific level that the price of the underlying asset must reach or exceed on the observation date in order to trigger an automatic early redemption of the product. This level is predetermined and defined in the term sheet of the product. If the price of the underlying asset reaches or exceeds the Autocall Trigger Level on one of the predefined observation days, early redemption is triggered automatically.
Autocall products allow early redemption of the nominal if certain conditions are met: if the price of the underlying* reaches or exceeds the autocall trigger level on one of the predefined observation days, early redemption is triggered automatically.
Barrier level is a term used in structured products to refer to a predetermined price level for an underlying asset. If the price of the underlying asset reaches or falls below the barrier level, it can trigger certain actions, such as a change in the payout or the early redemption of the structured product. Barriers can be set as absolute levels, such as a specific price, or as relative levels, such as a certain percentage of the initial price.
In a barrier observation on daily close, the barrier is only considered touched or breached if the daily closing prices of the underlying asset meet the predetermined level.
Barrier observation at expiry implies that the price of the underlying asset is only considered relevant for a barrier touch at the expiration date.
A collection of individual assets, such as stocks, bonds, or commodities. These assets are usually selected based on a specific sector or theme, and are used to create a diversified portfolio that can help to reduce risk. Basket-based structured products, such as tracker certificates, are designed to track the performance of a predefined basket of assets. The performance of the basket is usually measured by an index or benchmark, and investors can gain exposure to the basket through the structured product without having to directly own or manage the underlying assets.
A structured product can be purchased at the current bid price. For products that are less liquid, the bid and ask prices are provided by the market maker. In this case, the bid price is below the ask price.
The difference between the purchase and sale price. The amount of the bid-ask spread depends on the liquidity of the underlying and the underlying volatility. The quality of the market maker also has an important impact on the spread. If the market making does not attract a lot of attention, it often results in a high spread, too little volume or even an absence of bid and ask prices.
Value of the interest-bearing component (bond component) of a structured product. Required mainly for modified differential taxation.
The Bonus Level corresponds to the Strike Level of a Bonus Certificate. It indicates the minimum amount an investor will receive if the Barrier is not breached.
The Bonus yield indicates the return that is possible as a result of the Bonus. At issue Date, it corresponds approximately to the sideways yield. As soon as the price of the Product is above the Bonus Level, the Bonus yield is zero.
Call option is a financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (strike price) within a certain period of time (expiration date). Call options are typically used to speculate on the price of an asset rising, and can provide investors with the opportunity to profit from such price movements without having to directly own the asset.
Cap in a structured product is a feature that limits the potential return that the investor can earn on the investment. The cap sets a maximum return level that the investor can receive, regardless of how much the underlying asset may appreciate. Caps can help to protect the investor from downside risk and provide a known maximum return, but they may also limit the potential upside of the investment.
The capital protection level corresponds to the guaranteed minimum redemption to the investor by the issuer at expiry, irrespective of the performance of the underlying.
When a structured product reaches the end of its term, the nominal is redeemed. The issuer can carry out the redemption according to the term sheet via physical delivery of the underlying or as a cash settlement. With cash settlement, the investor receives the value (as of the date of the final fixing) of the product in cash on the redemption date.
Certificate in structured products is a type of financial instrument that offers exposure to an underlying asset or group of assets. It is issued by a financial institution and provides investors with a way to gain exposure to the performance of the underlying asset, without having to directly own or manage the asset. Certificates can be structured in various ways, and can include features such as caps, floors, and barriers that limit the potential returns and risks of the investment.
Continuous barrier observation refers to the condition where every price point of the underlying asset, recorded during trading hours throughout the entire term of the structured product, is taken into account for determining whether the barrier level has been reached or not.
Conversion ratio is the quantity of underlying assets that are represented by a structured product.
COSI refers to a segment of structured products that offer additional security to investors against the risk of issuer default. These collateral-secured certificates are backed by collateral in the form of a pledge based on the market price and fair value of the product, which is deposited with SIX Swiss Exchange. The use of collateral helps to minimize the risk to investors and provides an added layer of protection. These collateral-secured certificates are designated with the “COSI” extension to indicate that they are collateral-secured instruments.
Credit quality in structured products refers to the creditworthiness and financial stability of the issuer of the structured product. The credit quality is assessed by credit rating agencies, who evaluate the issuer’s ability to meet its financial obligations and pay back its debts. Credit quality is an important factor in assessing the risk of investing in structured products because it can impact the likelihood of the issuer defaulting on its obligations. Structured products with a higher credit quality are generally considered to be less risky than those with a lower credit quality.
Derivatives are financial instruments that derive their value from an underlying asset or group of assets. They are contracts between two or more parties that agree to buy or sell the underlying asset at a future date and at a predetermined price. Derivatives can be used to hedge against market risks or to speculate on price movements in various asset classes, such as stocks, commodities, and currencies. Examples of derivatives include options, futures, forwards, and swaps.
The discount refers to the reduction in price when compared to the cost of making a direct investment in the underlying asset.
Distance to barrier in a structured product refers to the difference between the current price of the underlying asset and the barrier level specified in the product’s terms. It is a measure of how close the underlying asset’s price is to breaching the barrier level, and it can be used to assess the risk of the structured product. If the distance to barrier is small, the likelihood of the barrier being breached is higher, which increases the risk of the product. Conversely, if the distance to barrier is large, the risk of the product is lower.
Distance to strike in a structured product refers to the difference between the current price of the underlying asset and the strike price specified in the product’s terms. It is a measure of how close the underlying asset’s price is to the strike price, and it can be used to assess the potential profitability of the structured product. If the distance to strike is small, the potential profit of the product is higher if the underlying asset’s price rises or falls to the strike price. Conversely, if the distance to strike is large, the potential profit of the product is lower.
Under this type of barrier in a structured product, the performance of the underlying asset during the product’s term is irrelevant. The only factor that matters is the underlying asset’s price on the final fixing date. For a European barrier, the barrier is considered breached only if the underlying asset’s price is at or below the barrier level on the final fixing date.
Eusipa is a European industry association that represents the interests of the structured investment products and derivatives industry. Eusipa provides a platform for its members to discuss and address regulatory and market issues related to structured products and derivatives in Europe.
Investment funds that can be traded on an exchange like stocks or structured products. The most popular ETFs are based on indexes and precious metals.
Η εύλογη αξία είναι η εκτιμώμενη αξία ενός δομημένου προϊόντος που λαμβάνει υπόψη παράγοντες όπως τα μερίσματα, τα επιτόκια, η μεταβλητότητα και οι κανονισμοί. Υπολογίζεται με βάση τη συνάρτηση αποπληρωμής του προϊόντος στη λήξη. Για τον προσδιορισμό της εύλογης αξίας χρησιμοποιούνται θεωρητικά μοντέλα όπως τα Black και Scholes, αλλά μπορεί να διαφέρει ανάλογα με το συγκεκριμένο μοντέλο που χρησιμοποιείται και θα πρέπει να θεωρείται μόνο ως ένδειξη.
Η τελευταία ημέρα της διάρκειας ενός δομημένου προϊόντος.
FINMA σημαίνει Ελβετική Εποπτική Αρχή Χρηματοπιστωτικών Αγορών. Είναι ο κύριος ρυθμιστικός φορέας που είναι υπεύθυνος για την εποπτεία και τη ρύθμιση των χρηματοπιστωτικών αγορών στην Ελβετία, συμπεριλαμβανομένων των τραπεζών, των ασφαλιστικών εταιρειών, των χρηματιστηρίων και άλλων χρηματοπιστωτικών διαμεσολαβητών. Αποστολή της FINMA είναι να διασφαλίζει τη σταθερότητα, την ακεραιότητα και τη διαφάνεια του ελβετικού χρηματοπιστωτικού συστήματος, προστατεύοντας παράλληλα τους επενδυτές και τους καταναλωτές.
Το floor είναι ένα είδος προστασίας που περιορίζει τις πιθανές απώλειες του υποκείμενου περιουσιακού στοιχείου ή του ίδιου του προϊόντος. Το κατώτατο όριο καθορίζει ένα ελάχιστο επίπεδο τιμής που πρέπει να επιτύχει το υποκείμενο περιουσιακό στοιχείο πριν από την εξαγορά του προϊόντος ή πριν από τη συμμετοχή του επενδυτή στις πιθανές αποδόσεις. Τα δάπεδα μπορούν να συμβάλουν στη μείωση του κινδύνου της επένδυσης στο προϊόν, αλλά μπορεί επίσης να περιορίσουν τις πιθανές αποδόσεις.
Οι κυμαινόμενοι τίτλοι είναι ένα είδος χρηματοοικονομικού προϊόντος που παρέχει πλήρη προστασία του κεφαλαίου στο νόμισμα αναφοράς τους όταν λήγουν, μαζί με μεταβλητές πληρωμές κουπονιών. Οι πληρωμές αυτές είναι συνδεδεμένες με ένα συγκεκριμένο επιτόκιο αναφοράς, πράγμα που σημαίνει ότι μπορεί να αυξομειώνονται.
Τα συμβόλαια μελλοντικής εκπλήρωσης είναι χρηματοοικονομικές συμβάσεις που δεσμεύουν τον αγοραστή να αγοράσει ένα περιουσιακό στοιχείο ή τον πωλητή να πωλήσει ένα περιουσιακό στοιχείο σε προκαθορισμένη μελλοντική ημερομηνία και τιμή. These contracts are typically traded on an exchange and can involve assets like commodities, stocks, or currencies. In simple terms, futures allow investors to lock in a price today for an asset they plan to buy or sell at a later date, helping them manage price fluctuations and reduce risk.
An exchange that facilitates the trading of unsecuritized derivatives, such as options and futures, is known as a futures exchange. The EUREX is a globally recognized example of a futures exchange.
Η εύλογη αξία είναι η εκτιμώμενη αξία ενός δομημένου προϊόντος που λαμβάνει υπόψη παράγοντες όπως τα μερίσματα, τα επιτόκια, η μεταβλητότητα και οι κανονισμοί. Υπολογίζεται με βάση τη συνάρτηση αποπληρωμής του προϊόντος στη λήξη. Για τον προσδιορισμό της εύλογης αξίας χρησιμοποιούνται θεωρητικά μοντέλα όπως τα Black και Scholes, αλλά μπορεί να διαφέρει ανάλογα με το συγκεκριμένο μοντέλο που χρησιμοποιείται και θα πρέπει να θεωρείται μόνο ως ένδειξη.
Η τελευταία ημέρα της διάρκειας ενός δομημένου προϊόντος.
FINMA σημαίνει Ελβετική Εποπτική Αρχή Χρηματοπιστωτικών Αγορών. Είναι ο κύριος ρυθμιστικός φορέας που είναι υπεύθυνος για την εποπτεία και τη ρύθμιση των χρηματοπιστωτικών αγορών στην Ελβετία, συμπεριλαμβανομένων των τραπεζών, των ασφαλιστικών εταιρειών, των χρηματιστηρίων και άλλων χρηματοπιστωτικών διαμεσολαβητών. Αποστολή της FINMA είναι να διασφαλίζει τη σταθερότητα, την ακεραιότητα και τη διαφάνεια του ελβετικού χρηματοπιστωτικού συστήματος, προστατεύοντας παράλληλα τους επενδυτές και τους καταναλωτές.
Το floor είναι ένα είδος προστασίας που περιορίζει τις πιθανές απώλειες του υποκείμενου περιουσιακού στοιχείου ή του ίδιου του προϊόντος. Το κατώτατο όριο καθορίζει ένα ελάχιστο επίπεδο τιμής που πρέπει να επιτύχει το υποκείμενο περιουσιακό στοιχείο πριν από την εξαγορά του προϊόντος ή πριν από τη συμμετοχή του επενδυτή στις πιθανές αποδόσεις. Τα δάπεδα μπορούν να συμβάλουν στη μείωση του κινδύνου της επένδυσης στο προϊόν, αλλά μπορεί επίσης να περιορίσουν τις πιθανές αποδόσεις.
Οι κυμαινόμενοι τίτλοι είναι ένα είδος χρηματοοικονομικού προϊόντος που παρέχει πλήρη προστασία του κεφαλαίου στο νόμισμα αναφοράς τους όταν λήγουν, μαζί με μεταβλητές πληρωμές κουπονιών. Οι πληρωμές αυτές είναι συνδεδεμένες με ένα συγκεκριμένο επιτόκιο αναφοράς, πράγμα που σημαίνει ότι μπορεί να αυξομειώνονται.
Τα συμβόλαια μελλοντικής εκπλήρωσης είναι χρηματοοικονομικές συμβάσεις που δεσμεύουν τον αγοραστή να αγοράσει ένα περιουσιακό στοιχείο ή τον πωλητή να πωλήσει ένα περιουσιακό στοιχείο σε προκαθορισμένη μελλοντική ημερομηνία και τιμή. These contracts are typically traded on an exchange and can involve assets like commodities, stocks, or currencies. In simple terms, futures allow investors to lock in a price today for an asset they plan to buy or sell at a later date, helping them manage price fluctuations and reduce risk.
An exchange that facilitates the trading of unsecuritized derivatives, such as options and futures, is known as a futures exchange. The EUREX is a globally recognized example of a futures exchange.
Hedging, in its simplest form, is a strategy used to protect investments from potential losses. It involves taking a position in a related financial instrument, such as options or futures, to offset the risk associated with the original investment. In other words, hedging aims to minimize or eliminate the impact of negative price movements on an investment, acting like an insurance policy for the investor.
A call option is in the money if the price of the underlying is well above the strike price. A put option is in the money if the price of the underlying is well below the strike price.
The initial fixing date in structured products is the date on which the value of the underlying asset is determined and the terms of the product are set. It marks the beginning of the observation period, during which the performance of the underlying asset is monitored to determine the return on the structured product. The initial fixing date is typically specified in the termsheet of the product and is important because it sets the starting point for the calculation of the investor’s potential returns
The ISIN is the international form of the Swiss security identification number (Valorennummer, or Wertpapierkennnummer in Germany). ISIN stands for international securities identification number. It always has 12 digits and includes a country identifier. The ISIN of Swiss securities begins with «CH»; that of German securities begins with «DE».
Issue (from the Latin word exeo = go out, go forth) is the issuance of securities. It refers to the public offering of a security for purchase on a regulated market.
Issuer refers to the distributor of a structured product. Structured products are considered debentures of the issuer from a legal perspective, and investors who purchase them become creditors of the product’s issuer.
The risk issuer refers to the risk that the issuer of a structured product may default on its obligation to pay the promised returns to the investors. In structured products, the issuer is typically a bank or financial institution that issues the product and guarantees its return.
The knock-out level is a predetermined price level of an underlying instrument, which when breached or touched, causes a knock-out warrant to expire prematurely.
Leveraged/geared products often experience more significant increases or decreases in value compared to the underlying instrument’s price movements. The degree of these value disparities is measured by leverage/gearing.
Liquidity is an indication of how easily a financial instrument can be traded. A measure of how easily a financial instrument can be traded is known as liquidity. It is ensured by the issuer or market maker through the continuous quotation of buy and sell prices.
Listed structured products are investment instruments that are traded on public exchanges or markets, such as stock exchanges. They have defined features and payout structures, which are determined by the issuer and are known to investors at the time of purchase. These products are available to retail investors and can be bought and sold during market hours, similar to other securities such as stocks or bonds.
Lock-in structured products allow investors to fix their potential profits. If the price of the underlying asset reaches the lock-in level, a redemption amount is paid out at the end of the term that is at least equal to the lock-in level, regardless of the price movement of the underlying asset during the term.
In lookback options, the barrier and/or strike level is set only after a specified lookback period, during which the underlying asset’s price is observed. This period allows investors to benefit from more favorable price movements of the underlying asset and may provide greater protection against adverse price movements.
Those who provide continuous bid and ask prices to ensure the tradability (market liquidity) of securities are known as market makers.
Last day of the term of a structured product. At maturity, a certificate or warrant can be repaid through cash settlement or physical delivery of the underlying instruments.
Non-listed structured products are investment instruments that are not traded on public exchanges or markets. They are usually created by financial institutions and have complex features and payout structures that are tailored to meet the specific needs of individual investors. These products are typically sold over the counter (OTC) to high net worth individuals or institutional investors.
Non-listed structured products are investment instruments that are not traded on public exchanges or markets. They are usually created by financial institutions and have complex features and payout structures that are tailored to meet the specific needs of individual investors. These products are typically sold over the counter (OTC) to high net worth individuals or institutional investors.
A standardized option is a financial contract that gives the holder the right to buy (call) or sell (put) a specific quantity of an underlying asset at a predetermined price and time (for European-style options) or during a specific period (for American-style options).
OTC (over the counter) refers to a financial transaction that takes place off-exchange, meaning it is not traded on a public exchange. Instead, the transaction is negotiated and agreed upon between two parties.
Out of the money refers to a situation in which the current market price of the underlying asset is not favorable to the holder of an option. Specifically, if the price of the underlying asset is below the strike price for a call option or above the strike price for a put option, the option is considered to be out of the money.
Participation refers to an investor’s exposure to the underlying asset or assets, and the potential returns or losses associated with that exposure. The level of participation can be determined by the product’s terms and can vary depending on the specific product. In some cases, structured products may offer full participation in the underlying asset’s performance, while in other cases, the participation may be limited by a cap or other restrictions.
Payout profile refers to the pattern of potential returns that the product offers to investors over the product’s lifetime. The payout profile is determined by the product’s structure and features, such as the strike price, the underlying asset, and the maturity date.
Performance is the price development of a security. Description of the performance is usually based on a specific period of time (e.g. one year) and expressed as a percentage.
If a structured product provides for physical delivery of the underlying instrument upon maturity, the corresponding number of underlying instruments will be credited to the holder’s account on the maturity date if the conditions have been met. However, physical delivery is typically only applicable for products based on shares, while other products are settled in cash at maturity (cash settlement).
Typically, buying a leveraged product and then immediately exercising the associated option to purchase or sell the underlying asset would be more costly than directly purchasing or selling the asset in the market. The difference in cost is known as the premium, which represents the additional expense incurred by using a leveraged product such as a warrant.
The period between the issuance of a product and when it is fully paid for. The primary market of structured products is where new structured products are first issued and sold by the issuer to investors. It is the initial stage of the product’s lifecycle and involves creating, pricing, and selling the product to investors.
Currency in structured products refers to the currency in which the investment instrument is traded, bought or sold. It is not necessarily the same as the currency of the underlying asset or the strike level. The choice of currency can impact the pricing, risks, and returns of the structured product.
Product types refer to the specific structures or designs of structured products that are available to investors. In Europe and Switzerland, these types can include autocallables, reverse convertibles, digital options, and barrier options, among others.
A put option/warrant gives the holder the right to sell a specific amount of an underlying security at a predetermined price during a specified period of time (American-style) or at a specific point in time (European-style). As the price of the underlying security decreases, the value of the option right increases, making the option more valuable. Therefore, the buyer of a put option benefits from a decline in the price of the underlying security.
The quanto feature allows the elimination of exchange rate risks for products where the product currency is not the currency of the underlying.
The prices at which issuers continuously offer to buy and sell their structured products are commonly known as “quotes”. A quote includes the security symbol, security number (ISIN), a bid price along with the size offered, and an ask price with the corresponding size.
In the world of structured products, rating refers to the evaluation of the creditworthiness and financial stability of the issuer of the structured product. The rating agency assesses the creditworthiness of the issuer and assigns a rating based on various factors, including financial strength, default risk, and market reputation. The rating is an indicator of the likelihood that the issuer will default on their obligations and can be used by investors to assess the risk of investing in the structured product. of the product, the product is redeemed after a certain period of time. The exception is products that expire with no value, such as knock-out warrants.
A product is redeemed on its redemption date. This can be made through a cash settlement in the form of a monetary booking or via the actual deliver
A reverse convertible offers a fixed interest rate (coupon) that is usually higher than current market rates. At maturity, the issuer can either pay back the nominal value or deliver a set number of underlying shares. If the share price is below the strike price on the valuation date, repayment is usually made in shares. However, if the share price drops significantly, the interest payments may not be enough to cover the loss, resulting in potential losses for investors.
Many structured products offer an attractive return even when the price of the underlying falls, as long as it does not touch or go below a fixed barrier. The current distance of the underlying to this barrier is called the risk buffer.
Structured products can generate attractive returns even when the price of the underlying instrument falls slightly, as long as a predetermined safety threshold is not breached. The current price difference between the underlying instrument and this threshold is called the “safety buffer”.
The secondary market of structured products is where already-issued structured products are bought and sold by investors after the initial issuance in the primary market. It is the market where investors can trade structured products with other investors rather than buying them directly from the issuer. The secondary market provides liquidity to investors who wish to exit their positions or purchase more of the structured product.Security/SIN The securities identification number (Valorennummer) is the identifying number assigned to all securities listed on the Swiss exchange. In Germany, the equivalent is the Wertpapierkennnummer.
SIX Exchange is a Swiss stock exchange that provides a trading platform for various financial products, including structured products. It is a popular exchange for trading structured products due to its transparent and regulated trading environment. SIX Exchange allows investors to buy and sell structured products listed on the exchange, providing liquidity and price transparency to the market.
Softcallable is a type of structured product that allows the issuer to redeem the product early, but only under certain conditions specified in the product’s terms. These conditions may include a certain price threshold being met or a specific time period passing. Softcallable products usually offer higher yields than traditional bonds because of the potential for early redemption, but this feature also exposes investors to more risk.
Issuers typically maintain bid and ask prices for their issued securities, even if the market is not active. This helps ensure that the securities remain tradable. The difference between the bid and ask prices is known as the “spread.”
Typically, the option component of a structured product determines the Strike Level. This level serves as the baseline for an investor’s involvement in the appreciation (call) or depreciation (put) of the underlying asset.
A structured product is a financial product that combines traditional instruments with derivatives to create a unique investment opportunity. It is packaged and issued by a financial institution as a stand-alone product.
The subscription period is the period during which an investor can subscribe to a new structured product before purchasing it later at the issuance terms and conditions.
A termsheet for a structured product is a document that outlines the terms and conditions of the product. It includes information such as the underlying asset, the payout structure, the barrier levels, the observation period, and the maturity date. The termsheet provides investors with a clear understanding of how the structured product works and what their potential returns and risks are.
An option or warrant’s price comprises two elements: the “intrinsic value” and the “time value.” The time value component is impacted not only by fluctuations in the underlying asset’s price but also by shifts in other factors like volatility, interest rates, and dividends.
A tracker certificate is a type of investment product that follows the performance of a specific financial market index, such as the S&P 500. The value of the tracker certificate rises or falls in line with the index it tracks. It provides investors with an easy way to gain exposure to a particular market without having to buy and manage the individual stocks or assets within that market.
Twin-win certificates offer investors the opportunity to potentially gain from both increasing and decreasing prices of the underlying asset. Nonetheless, if the underlying asset’s price experiences a significant drop, there is a risk that a specified safety barrier may be crossed. If this occurs, investors may face substantial losses.
The underlying in structured products is the asset or financial instrument on which the product is based. It can be a single asset or a basket of assets, such as stocks, bonds, commodities, or currencies. The performance of the underlying asset(s) determines the return on the structured product.
The Valor code is a unique identifier assigned to a specific structured product by the Swiss Structured Products Association (SSPA). It allows for easy identification and tracking of the product on the market.
is a measure of how much the price of a financial instrument, like a stock or a bond, changes over time. It gives you an idea of the ups and downs or the “bumpiness” of the investment. Higher volatility means the price can change dramatically in a short period, while lower volatility indicates more stable and steady price movements. Understanding volatility can help you assess the potential risks and rewards associated with an investment.
The Valor code is a unique identifier assigned to a specific structured product by the Swiss Structured Products Association (SSPA). It allows for easy identification and tracking of the product on the market.
is a measure of how much the price of a financial instrument, like a stock or a bond, changes over time. It gives you an idea of the ups and downs or the “bumpiness” of the investment. Higher volatility means the price can change dramatically in a short period, while lower volatility indicates more stable and steady price movements. Understanding volatility can help you assess the potential risks and rewards associated with an investment.
It is a financial instrument that gives you the right, but not the obligation, to buy or sell an underlying asset (such as a stock) at a specific price, called the “strike price,” before a certain expiration date. Warrants are similar to options, but they are issued by companies themselves, rather than traded on an exchange. Investing in warrants allows you to potentially profit from the price movements of the underlying asset without directly owning it, but keep in mind that if the warrant is not exercised before its expiration date, it becomes worthless.
Worst-off feature is a type of protection that is offered in some structured products. It guarantees that the investor will receive at least the worst performance among a group of underlying assets, even if the actual return on the investment is negative. This means that if the value of one or more assets in the group drops significantly, the investor will still receive the promised minimum return. The worst-off feature is intended to provide investors with some level of downside protection and reduce their exposure to risk.
Yield Enhancement Products are a popular type of Structured Investment Product in Switzerland, with a limited return potential due to a set threshold or cap. These products are also known as Maximum Return products. In exchange, investors receive either a discount on the underlying asset (in the case of Discount Certificates) or a coupon (in the case of Barrier Reverse Convertibles or Reverse Convertibles). Yield Enhancement Products are designed to generate greater profits than a direct investment in the underlying asset, particularly in sideways trading markets.
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