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Unicredit launches 16 new Fixed Cash Collect Worst Of on baskets of Italian and international shares

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Unicredit launches 16 new Fixed Cash Collect Worst Of on baskets of Italian and international shares

New issue from Unicredit. This is a new series of 16 Fixed Cash Collect tipologia Worst Of, now available on Borsa Italiana’s EuroTLX. In particular, the new investment certificates have baskets made up of three or four Italian and international shares as underlying, they have a maturity of 3 years (August 2025) and pay a unconditional fixed monthly premium which ranges from a minimum of 0.5% to a maximum of 1.25% of the issue price depending on the underlying. Additionally, these products may expire early starting in March 2023 and the level of barrier varies from 60% to 70% of the initial value.

Main features of Fixed Cash Collect Worst Of

Fixed Cash Collect Worst Of allow investors to receive periodic premiums not conditioned on the performance of the underlying on the monthly observation dates and provide for the possibility of early repayment starting from March 2023 if the worst underlying is at a value equal to or greater than 95% of the Initial Value: thanks to this mechanism, the Certificates can be redeemed early even if the value of the Underlying has fallen with respect to the Initial Reference Value, within the limits of 95 %.

Fixed Cash Collects have been designed for investors who wish to obtain a constant flow of premiums and not conditioned by the performance of the securities that make up 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 market securities of the last period, while maintaining a discrete protection barrier that is observed only at maturity.

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Expiry scenarios

At the time of the deadline (August 21, 2025) they are there two possible scenarios. If the value of the underlying share, which is part of the basket and with the worst performance, is equal to or above the Barrier level, the instrument redeems the nominal amount (100 euros per certificate) in addition to the unconditional premium. Otherwise, if the value of the underlying share, which is part of the basket and with the worst performance, is below the Barrier level, a value is paid that is commensurate with the performance of the underlying share, which is part of the Basket and with the worst performance, in addition to the unconditional premium: in this case, the Certificates do not protect the invested capital.

Certificates suitable for controlled risk strategies

The new issue further enriches the choice of investment solutions for an income strategy and the optimization of the overall portfolio return, also on shares with no expected dividends, at controlled risk thanks to the capital protection barrier observed only at the final valuation date .
The Fixed Cash Collect Worst Of baskets have been designed to offer investors various investment possibilities: there are baskets built on technological stocks, such as the Certificate (ISIN DE000HB9L0K4) built on Google, Apple, Meta Platforms and Microsoft which pays an unconditional monthly premium of 0.65% and has a 60% barrier, or on companies related to the automotive sector such as Ferrari, Porsche and Tesla (ISIN DE000HB9L0G2) which pays an unconditional monthly premium of 0.95% against a barrier to maturity of 60%.
Therefore, the possibilities offered by the baskets of this new issue are different, all of the Worst of type, which alternate thematic baskets with non-thematic ones and baskets with good correlation (tendentially less risky) with baskets of less correlated securities and therefore able to pay bigger prizes. The concept seems to be counterintuitive but lies in the fact that stocks in the same sector and highly correlated with each other are less likely than de-correlated ones to see an underlying in the basket take the “wrong” path, taking with it the overall performance of the certificate.

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