Features

 

Bonus certificates

Market expectation

  • Sideways moving or slightly increasing underlying value
  • Underlying value will not touch knock-in during the duration

 

Features

  • Unrestricted participation in the growth of the underlying value
  • Fixed bonus payment with sideways movement up to strike
  • Bonus payment protected until knock-in (partial protection)
  • After touching the knock-in, the bonus converts to a tracker certificate
  • Renouncing current income in favour of the strategy
  • Low risk than a direct investment due to the partial protection until knock-in

 

Discount certificates

Market expectation

  • Sideways moving to slightly increasing underlying value
  • Sinking volatility

 

Features

  • At the time of maturity, if the underlying value is under the strike price, the customer receives the underlying value with a lower costs price (possible cash settlement)
  • Profit potential is restricted, cap is maximum reimbursement
  • Discount certificates always demonstrate a discount off the underlying value (adjusted by the subscription ratio)
  • In line with a writer strategy (option writer business)
  • Lower risk than a direct investment
  • Missed profits with a sharply increasing underlying value

 

Reverse Convertible

Market expectation

  • Sideways moving to slightly increasing underlying value
  • Sinking volatility

 

Features

  • If the underlying value is over the strike price at maturity, the last coupon is paid back with the capital
  • Otherwise, the last coupon is paid with the underlying value (possible cash settlement)
  • Similar construction as discount certificates, but pay guaranteed interest in the form of a coupon
  • Coupon payment is in line with the discount on the discount certificate
  • Lower risk than a direct investment
  • Missed profits with a sharply increasing underlying value

 

spacer

© chameleon asset management ag · Theaterstrasse 4 · CH-4051 Basel · info@chameleon-asset.ch · Phone +41 61 633 77 77

spacer