1130 Capital protection certificate with barriers
Product type number as specified by the Swiss Structured Products Association (SSPA): 1130
Please consult the termsheet and the accompanying issue prospectus for information on the exact product functionality, product details and risks.
Market expectations
- Rising underlying
- Major price corrections in the underlying are possible
- Underlying will not reach a certain level (Knock-in/Knock-out) during the term
Characteristics
- The amount of the repayment upon expiry is at least the amount of the capital protection.
- The capital protection is expressed as a percentage of the nominal amount (e.g. 100%).
- The capital protection applies only to the nominal amount and not to the purchase price.
- The value of the product may fall below the capital protection level during the term.
- Participation in the rising underlying in the amount of the participation rate up to the knock-out level.
- Possibility of a coupon payment after the knock-out level is reached.
- The profit potential is limited.
Advantages
- The minimum repayment specified at the beginning of the term is only guaranteed on expiry.
- Participation in the positive performance of the underlying up to a predefined maximum (knock-out level).
- If the underlying reaches the knock-out level, there is the possibility of a coupon payment on maturity (depending on the product structure).
Disadvantages
- Capital protection applies only upon expiry. The value of the product may fall below the minimum repayment during the term.
- If the guaranteed repayment is below 100%, a loss may result if the performance of the underlying is negative.
- If the underlying rises sharply, the return compared with a direct investment is limited.
Repayment terms
- Payment of the guaranteed minimum repayment on expiry.
- Plus the positive performance of the underlying (from the strike price) if the underlying has not touched or exceeded the knock-out level at any time during the term.
- However, if the knock-out level is touched or exceeded at any time during the term, the participation in the underlying’s positive performance lapses. In this case, the guaranteed capital protection amount and the coupon payment are paid out.
Pay-off diagram upon expiry
Examples upon expiry
Product & scenarios
|
Scenario 1 |
Scenario 2 |
Scenario 3 |
Rising underlying |
Slightly rising underlying |
Falling underlying |
SMI® Index |
SMI® Index |
SMI® Index |
100% |
100% |
100% |
100% |
100% |
100% |
124% |
124% |
124% |
4% |
4% |
4% |
2 years |
2 years |
2 years |
100% |
100% |
100% |
CHF 10'000 |
CHF 10'000 |
CHF 10'000 |
Yes |
No |
No |
8'000 points |
8'000 points |
8'000 points |
8'800 points |
8'400 points |
7'200 points |
10% |
5% |
-10% |
Payoff
|
Scenario 1 |
Scenario 2 |
Scenario 3 |
10'000 + (4%*10'000) |
10'000 + (5%*100%*10'000) |
10'000 |
CHF 10'400 |
CHF 10'500 |
CHF 10'000 |
4% |
5% |
0% |
Taxes
Predominantly one-off interest payments (IUP) |
No |
Yes |
No |