UniCredit has issued on the SeDeX-MTF of Borsa Italiana a new series of over 100 Bonus Certificates on Italian and international indexes and stocks. These are 45 Bonus Caps and 49 Top Bonuses they offer conditional bonuses between 105% and 134%.
An interesting issue for several reasons: from the timing of the launch to the characteristics of the Bonus Certificates divided between Bonus Cap and Top Bonus. First of all, UniCredit’s new products arrive in a climate of uncertainty on the markets due to geopolitical tensions, inflation and central bank policies. In a similar market context, Bonus Certificates can prove to be efficient instruments in this phase of high volatility: in fact, thanks to their structure, they are instruments which allow to “monetise” volatilityand offer attractive returns until the barriers are reached, which depending on the type of product can be continuous (for Bonus Caps) or on expiry (for Top Bonuses).
The two types of Bonus Certificates
I Bonus Cap allow you to receive a bonus at maturity if the underlying has always maintained a value above the barrier level, set for this issue between 60% and 65% of the initial value. Conversely, if the value of the underlying, at any moment in the life of the product, is equal to or lower than the barrier level, at maturity a value equal to the performance of the underlying will be paid, up to a maximum equal to the level of the cap. As they are certificates with conditionally protected capital, the Bonus Caps make it possible 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. They are therefore ideal in a sideways market environment.
I Top Bonus allow you to receive a bonus at maturity if the underlying at maturity quotes at a value equal to or higher than the barrier level, set for this issue between 50% and 70% of the initial value. Therefore, unlike the Bonus Caps, the barrier is European and is valued only on the final observation date at maturity and not continuously. In the event that at maturity the value of the underlying is below the barrier level, a value equal to the performance of the underlying will be paid.
You can view the product information updated in real time on the site www.investimenti.unicredit.it