Structured products & theme-based investments

The barrier was touched, what next?The concept of recovery productsThe barrier of my Barrier Reverse Convertible was touched, what can I do now?In recent weeks, the prices of some popular underlyings have fallen sharply and certain products may have touched the barrier. When the barrier is touched, the products now refer to the worst performing underlying (worst-of). The only way to avoid losses for the customer is for the worst performing underlying to recover significantly above the initial fixing. But is this really all investors can do? Wait and hope for a strong recovery?The alternative to wait and see: recovery productsThe concept of recovery products is simple but efficient. The recovery product replaces the existing position and is perfectly adapted to the current market conditions. At the same time, we reduce the risk of the product, as we focus on only one underlying for the recovery product. By lowering the barrier, the probability of a full redemption of the nominal at maturity is significantly increased.The investment concept in detail

The barrier of your existing product was touched. A recovery of the worst performing underlying asset above the initial fixing is considered very unlikely. The existing position is sold at the current bid price.

The capital received is invested in a recovery product with an ask price close to the selling price of the old product, so that no additional capital is required.

In the recovery product, a rise in the underlying beyond the barrier at maturity is sufficient to recover the full nominal (100%).

Recovery products Repayment scenarios of the recovery products

If the closing price of the underlying is above the barrier at final fixing, the investor will receive 100% of the nominal value repaid. In other words, a smaller increase in the underlying is enough for an investor to get back the full amount of capital invested initially.

If the closing level of the underlying is at or below the barrier level at the final fixing date, the investor will receive a number of shares per product according to the conversion ratio.

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