In the case of bonds and certificates whose potential returns depend on more than one underlying, the performance of the poorer underlying is important for determining the investment result. In return for the increased risk of such “multi-asset structures”, they offer higher safety buffers and / or higher return opportunities than would be possible with products that only relate to a single underlying.
For investors with the market view that the share prices of the vaccine manufacturer Moderna (ISIN: US60770K1079), which has risen by more than 200 percent in the past 12 months, and Pfizer (ISIN: US7170811035), are currently almost at the same level as a year ago listed, should be protected from massive price drops in the future, the Multi Fixed Coupon Express bond vaccines currently available for subscription is ideal for subscription.
5.50% interest, 50% safety buffer
The closing prices of the Moderna and Pfizer shares on June 29, 21 are set as the exercise price for the bond. The final redemption barriers activated exclusively on the final valuation date (23.6.25) will be found at 50 percent of the exercise prices.
Irrespective of the price development of the two shares, investors will receive an interest coupon of 5.50 percent annually, for the first time on June 30, 2002. If both share prices are determined on one of the valuation days, which are also set at annual intervals, for the first time on June 23, 2002, at or above the respective exercise price, then the bond including the upcoming interest payment will be repaid early and the chance of further interest payments will expire. If a share price is below the exercise price on one of these days, the term of the bond is extended by at least another year, after which the same procedure is used as on the previous valuation day, etc.
If the certificate is not redeemed early, it will be repaid with its issue price of 100 percent and the pending coupon payment if both shares are quoted at or above the barrier on the final valuation date (23.6.25). If a share is then more than 50 percent in the red, the bond will be redeemed by delivering a number of the worse-performing shares calculated on June 29, 21.
The first 5.50% multi fixed coupon express bond vaccines 21-25, maximum term until June 30, 25, ISIN: AT0000A2RJ11, can currently be subscribed in denominations of 1,000 euros with a 100 percent and 1.5 percent issue surcharge.
CertificateReport conclusion: This bond is suitable for investors with the market assessment that the prices of Moderna and Pfizer shares will develop reasonably stable over the next few years or will at least be above the repayment barrier of 50 percent of the exercise price in four years.
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