Visa, Mastercard and PayPal with 8.5% interest and 40% protection

Visa, Mastercard and PayPal with 8.5% interest and 40% protection

With price increases of 17 and 20 percent on a US dollar basis over the past 12 months, the shares of the US providers of cashless payment methods, Visa (ISIN: US92826C8394) and Mastercard (ISIN: US57636Q1040), especially after the Corona crash develop very well. Anyone who invested in the shares of the payment service provider PayPal (ISIN: US70450Y1038) a year ago has even been able to achieve a profit of 85 percent so far.

Although experts rate the future prospects of the three stocks as favorable, there is a realistic risk of a market correction after the price rises in recent months. Therefore, investing in the Protect Digital Payment 20-21 bond from Erste Group, which is currently offered for subscription, could be invested in the Erste Group, which will generate an annual return of 8.50 percent within the next year if the price of the three shares falls by up to 40 percent, be an alternative to direct equity investments.

8.50% interest, 40% security

The closing prices of the Visa, Mastercard and PayPal shares determined on December 1st, 2020 are set as starting values ​​for the bond. The barrier will be at 60 percent of the respective starting value. The barriers will be activated during the entire observation period from 1.12.20 to 24.11.21. Regardless of the price development of the three shares, investors will receive an interest coupon of 8.50 percent on December 2nd, 21st.

The way in which the bond is redeemed depends on the price development of the shares within the observation period. If no closing price below the respective 60 percent barrier is established during the observation period, the bond will be repaid on December 2nd, 2001 at its issue price of 100 percent. If one of the three share prices touches or falls below the barrier during the observation period and one of the three shares is listed below the starting value at the end, the repayment of the share with the worst performance will be made by means of the negative percentage price development.

The 8.50% First Protect Digital Payment, due on December 2nd, 21, ISIN: AT0000A2KR75, can currently be purchased from a minimum investment volume of EUR 3,000 in denominations of EUR 1,000 with 100 percent plus 1.50 percent issue surcharge.

CertificateReport conclusion: Due to the short term of just one year, this bond is suitable for investors who want to generate the attractive gross annual return of 8.50 percent within the next 12 months, even if the share price falls by up to 40 percent.


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