New issue by Unicredit. This is a series of 21 Fixed Cash Collect tipologia Worst Of, now available on Borsa Italiana’s SeDeX and Cert-X, which have baskets of Italian, European and American shares and indices as underlyings, a three-year maturity (December 2025) and pay an unconditional fixed monthly premium ranging from minimum of 0.40% (4.8% annualized) to a maximum of 0.90% (10.8% annualized) depending on the underlyings and the presence or absence of the airbag effect at maturity. The barrier level is 50% of the initial value of the shares or indices for all instruments.
These certificates have been designed for investors who wish to obtain a constant and unconditional flow of premiums from the performance of the stocks or indices that form the underlying baskets, which have been chosen to give investors a wide range of possibilities. The objective is in fact to make available to investors a range of tools to take a position on the most important stocks or indices of the last period, while still maintaining a discreet protective barrier that is observed only at maturity.
Main characteristics
Fixed Cash Collects allow investors to receive periodic premiums that are not conditional on the performance of the underlying on the monthly observation dates and, unlike the latest Fixed Cash Collects issued by UniCredit, provide for the possibility of early repayment. In fact, starting from December 2023, if the value of the underlying share which, within the basket, has recorded the worst performance is equal to or greater than the redemption value, the Certificate will expire early by repaying the nominal value equal to 100 euros.
Also featured in this issue is thestep-down effecta feature that reduces the early repayment threshold by 5% every quarter: this threshold starts from 100% of the Strike in December 2023, after three months it will be equal to 95%, then it will gradually reduce until it reaches a maximum level of 65%. % of the Strike, thus facilitating early repayment even in the event of a decline in the underlyings.
Expiry scenarios and airbag effect
At the time of expiration (December 2025) two scenarios are possible. If the underlying with the worst performance within the basket has a value equal to or higher than the barrier value, the Certificate repays 100 euros, plus the premium. Otherwise, if the underlying with the worst performance within the basket has a value below the barrier level, the Certificate repays a value of less than 100 euros, plus the last unconditional premium.
Furthermore, in this latest issue some certificates have theairbag effect. In this case, if the worst performing Underlying within the basket has a value below the barrier level, no redemption will be paid which linearly follows the performance of the worst performing Underlying. For example, if the worst underlying were to close with a loss of 60% compared to the initial value, the refund would be equal to 80 euros, in addition to all the premiums paid during the life of the product (which we remind you are unconditional).
The airbag effect is a additional element of protection which is added to an already very conservative product having a barrier of 50% and monthly premiums that are paid unconditionally: these characteristics therefore make it possible to obtain a product with a very conservative risk profile and, at the same , which can offer attractive returns.
You can view the product information updated in real time on the site www.investimenti.unicredit.it