Although an investment in stocks or stock indices after the massive recovery since the March crash at the current high level could be associated with considerable price risks, there will be no way around the stock market for investors looking for returns above inflation rates. The combination of broadly diversified equity indices and structured investment products is ideally suited to counteract the possible loss of purchasing power of capital employed.
With the Europe / USA Bonus & Safety Certificate currently being offered for subscription by the RCB on the EuroStoxx50 (ISIN: EU0009658145) and S & P500 index (ISIN: US78378X1072), investors can make positive contributions not only when the index level rises, but also when the index prices are stagnating or falling Generate returns.
3.00% interest and 51% security
The closing prices of the stock indices determined on October 28th, 2020 are set as starting values for the Bonus & Safety Certificate. The barriers activated during the entire observation period (29.10.20 to 24.10.25) will be found at 49 percent of the starting values. Regardless of how the index levels will move over the next five years and where they will be on October 24th, 25, investors will receive interest coupons of 3.00 percent on the annual interest dates, for the first time on October 29th, 21st.
If the indices are quoted above the respective barriers within the entire observation period, the certificate will be repaid on October 29, 25 at the issue price of 100 percent.
There is a risk of capital loss if one of the two index levels touches or falls below the barrier during the term and the index levels are formed below the starting values on the valuation date (24.10.25). In this case, the certificate will be repaid with the negative percentage index development of the poorer index.
The RCB 3.00% Europe / USA Bonus & Safety 3 certificate, due on October 29, 25, ISIN: AT0000A2JTZ4, can be subscribed to in denominations of EUR 1,000 with 100 percent until October 27, 2020.
Report conclusion: This certificate on the European EuroStoxx50 and the American S & P500 index will yield an annual gross return of three percent over the next five years with index declines of up to 51 percent.
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