Home » UniCredit launches the new Express Step-Down Certificates with an absolute novelty in terms of payoff

UniCredit launches the new Express Step-Down Certificates with an absolute novelty in terms of payoff

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UniCredit launches the new Express Step-Down Certificates with an absolute novelty in terms of payoff

The first series of 15 Express Step-Down Certificates issued by UniCredit. The payoff of these products is an absolute novelty within the range offered by the bank, which aims to complete what is one of the largest offers of certificates on the Italian market, going to count in addition to the 1100 investment products also 3800 leveraged products.

How the new Express works

The Express Step-Down Certificates allow you to take a position on single shares, both European and American, have a maturity of just over three years (November 2025) and provide quarterly observation dates: if on the observation dates the value of the underlying is higher than the redemption value, the product will expire early by paying an additional amount, which is equal to all accumulated quarterly premiums.

Also, thanks to the Step-Down mechanism, the early repayment level decreases by 5% every two observation dates and then starts at 100% down to 75%. Therefore, the certificates can be redeemed early even if the value of the underlying has fallen with respect to the initial value, within the limits of the threshold level for early redemption. Therefore, these products do not pay a periodic premium but a cumulative quarterly premium in the case of early redemption.

Let’s take the certificate with ISIN as an example DE000HB9LLY4 on Stellantis, which provides a barrier to maturity of 60% and a quarterly premium of 3.70%. In the event that the product has not already expired early, on the observation date of November 2023, if Stellantis were at a value equal to or greater than 90% of the initial value, the certificate would expire early by paying 100 euros plus 14.80 euros premium (corresponding to the amount accrued in four quarters).

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The expiry scenarios

Expiring (November 20, 2025) three cases are foreseen. In the event that the underlying should be at a level equal to or higher than the initial value, the certificate will reimburse 100 euros in addition to all the accrued quarterly premiums. Instead, in the event that the underlying should be between the barrier value and the initial value, the certificate will reimburse 100 euros while. Finally, in the event that the underlying should have a value lower than the barrier, the certificate reimburses an amount proportional to the performance of the share (less than 60 euros in the case of the barrier set at 60% and less than 70 euros in the case of the barrier. post at 70%).

A wide choice of Italian and foreign titles

As in previous UniCredit issues, these new products also contain certificates that allow you to take a position on both Italian and foreign underlyings, allowing investors to select the most suitable product for your expected level of risk and return. The cumulative quarterly premiums range from 2.35% of the certificate on Enel (ISIN DE000HB9LLR8) and on Generali (ISIN DE000HB9LLT4) which both have a barrier to maturity of 70%; at 7.75% of the certificate on Zalando (ISIN DE000HB9LM34) with a barrier of 60%.

The new Express are therefore suitable for those investors who are not looking for a periodic cash flow but who want focus on the growth and / or laterality of a stock to achieve an attractive return on early maturity.

You can view product information updated in real time on the site www.investimenti.unicredit.it

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