Tangled: Wristbands for Wirecard shareholders at the Annual General Meeting last year
Picture: Picture Alliance
Many investors with complex structured securities had to bleed due to the collapse of the house of cards. If you were smart, you could also use certificates to protect yourself from horrendous losses.
DAfter the failed balance sheet proposal on June 18 that Wirecard’s share price collapsed, it also caught countless structured securities relating to the Wirecard share as an underlying. This was not only observed on Black Thursday, when it was said in the morning that the figures would be published later in the day, although shortly afterwards an ad hoc announcement of the opposite content shook the markets. On the following days, too, the Frankfurt Stock Exchange recorded countless Wirecard certificate failures.
These securities were issued by providers such as BNP Paribas, Citigroup Global Markets, Credit Suisse, Deutsche Bank, DZ Bank or Vontobel. With such certificates or warrants, private investors can also implement strategies or speculative transactions that are not possible with a direct investment in shares or bonds. So they can bet on falling prices or make profits through leveraged certificates with significantly lower capital expenditure – if the approach works. However, the leverage also increases the risk of loss compared to direct investments.