BNP Paribas has issued on Borsa Italiana’s SeDeX (MTF) a new range of Maxi Cash Collect certificates on baskets of shares, functional products to focus on a specific investment theme. The new issue merges various “options” from the Cash Collect world into a single product. The first coupon (between 15% and 18% of the nominal value), to be paid at the end of the first quarter of the life of the certificate, it is “Maxi” and fixedor not conditioned by the performance of the underlying.
The subsequent coupons are quarterly and vary from 1.1% to 4% of the nominal value. In fact, the Maxi Cash Collects pay premiums conditional on the performance of the worst of basketball titles. This means that on the various quarterly valuation dates if the worst of the securities in the basket (basket Worst Of) is above the premium barrier (50% to 60% of the initial value of each of the underlying shares) the certificate will pay the premium. Very important is the presence of the memory effect which implies the possibility of subsequently recovering any unpaid premiums at previous valuation dates.
The certificate also boasts the possibility of early repayment (100 euros plus bonuses with memorandum effect) starting from the second quarter of evaluation if the value of all the shares in the basket is greater than or equal to their respective initial value.
At maturity (September 2, 2025), if the certificate has not been redeemed early, there are two possible scenarios. If the price of all the shares making up the basket is equal to or higher than the barrier level (between 50% and 60% depending on the certificate), the product reimburses 100% nominal value (100 euros per instrument) in addition to the last prize and those eventually in memory. Otherwise, if the price of at least one of the shares making up the basket is below the barrier level, the certificate pays an amount commensurate with the performance of the worst of the shares making up the basket (with consequent loss, partial or total, of the capital invested). .
More information on BNP Paribas’ Cash Collect Airbag range can be found at https://investimenti.bnpparibas.it/