UniCredit has released on the market today a new series of 100 new Bonus Certificates on Italian and international indices and shares that are added to the more than 1000 investment certificates offered by UniCredit and listed on the regulated markets of the Italian Stock Exchange (SeDeX and EuroTLX).
In a climate of nervousness on the markets due to geopolitical tensions, inflation and central bank policies, volatility on the markets continues to be important on the markets, the reference indices, the Vix and the Vstoxx now remain steadily above 20 points.
In that context, an idea for take advantage of volatility and continuing to focus on the stock market with the protection of barriers takes the form of financial instruments such as Bonus Certificates, which can offer interesting returns until the barriers are reached, which, depending on the type of product, can be continuous (for Bonus Caps and Reverse Bonus Cap) or expiry (for Top Bonuses).
In addition to the classics Top Bonus e Bonus Capthis issue offers investors a wide range of Reverse Bonus Cap, which allow investors to aim for the downside of individual stocks or indices, both European and American. It can be particularly interesting for investors who foresee further drops between now and the next few months, or for those who want a solution to hedge a “long” portfolio from possible future declines.
How do they work
Since these certificates have conditionally protected capital, i Bonus Cap Certificate they allow to optimize the return of the portfolio both in the event of a moderate rise, and in the event of a moderate fall or stability of the underlying, and are therefore ideal in a lateral market context. At maturity, two scenarios are possible: a) if the underlying, during the entire life of the Bonus Cap, has never recorded a value equal to or lower than the Barrier level, the certificate expires paying the maximum redemption amount equal to the Bonus; b) if the underlying at least once during the lifetime of the Bonus Cap has a value equal to or lower than the Barrier level, the Certificate expires by paying an amount commensurate with the performance of the Underlying, up to a maximum amount equal to the Cap. (<60 € in the case of the barrier set at 60% and <70 € in the case of the barrier set at 70%).
I Reverse Bonus Cap Certificate they have characteristics very similar to those of the Bonus Certificate, with the difference that they allow you to participate in the fall, rather than the rise, of the underlying. They are therefore suitable for investors who have a lateral and / or bearish view on the underlying. At maturity, in fact, two scenarios are possible: a) if the underlying, during the entire life of the Reverse Bonus Cap, has never recorded a value equal to or greater than the Barrier level, the Certificate expires paying the maximum redemption amount equal to to the Bonus; b) if the underlying at least once during the entire life of the Reverse Bonus Cap has a value equal to or greater than the Barrier level, the Certificate expires by paying an amount commensurate with the performance of the Underlying, up to a maximum amount equal to the Cap. (< 60 € in the case of the barrier set at 140% and <70 € in the case of the barrier set at 130%).
I Top Bonus Certificate they are distinguished from the first two types of Bonuses by the presence of the European Barrier, that is a barrier that is observed only at maturity and not during the entire life of the Certificate. In fact, the correspondence of the Bonus will depend solely on the value of the underlying on the Final Observation Date: if the underlying has a value equal to or greater than the Barrier level, the Certificate expires by paying the maximum redemption amount equal to the Bonus. Conversely, if the underlying has a value below the Barrier level, the Certificate expires by paying an amount commensurate with the performance of the Underlying. The products can be traded on EuroTLX’s MTF Cert-X from 09.05 to 17.30 on trading days, liquidity is guaranteed in purchase and sale by UniCredit Bank.
It is possible to view the Base Prospectus and the related Supplements, the Final Terms and the KIDS, as well as the information on the products updated in real time on the website www.investimenti.unicredit.it.