Payoff profiles
The development of the underlying value determines the profit or loss of your investment.
The payoff profiles show the profit or loss of an investment, if the underlying rises or falls.
(These are only illustrations, without being based on a specific product.)
Express bonds
"Classic"
"Fix coupon"
"Memory"
"Multi fix coupon"
"Multi memory"
Reverse convertibles
"Classic"
How do reverse convertibles react to…
… rising underlying prices?
If the price of the underlying share rises, the price of the bond rises as well because the redemption at 100 % of the nominal amount is becoming more likely.
… stable underlying prices?
With stable underlying prices the investor benefits from the fixed coupon and the redemption at 100 % nominal amount at maturity. The stable price has very little influence on the value of the bond, but the value of the bond rises as the remaining period to maturity shortens.
… falling underlying prices?
If the price of the underlying share falls, the price of the bond falls as well because the redemption by means of physical delivery of the share is becoming more likely. The fixed coupon is paid in any case.
"Protect Pro"
How do reverse convertibles react to…
… rising underlying prices?
If the price of the underlying share rises, the price of the bond rises as well because the redemption at 100 % of the nominal amount is becoming more likely.
… stable underlying prices?
With stable underlying prices the investor benefits from the fixed coupon and the redemption at 100 % nominal amount at maturity. The stable price has very little influence on the value of the bond, but the value of the bond rises as the remaining period to maturity shortens.
… falling underlying prices?
If the price of the underlying share falls, the price of the bond falls as well because the redemption by means of physical delivery of the share is becoming more likely. If the underlying is below the barrier on the valuation date. Investors then receive shares of the underlying. The fixed coupon is paid in any case.
"Bonus Pro"
How do reverse convertibles react to…
… rising underlying prices?
If the price of the underlying share rises, the price of the bond rises as well because the redemption at 100 % of the nominal amount is becoming more likely.
… stable underlying prices?
With stable underlying prices the investor benefits from the bonus and the redemption at 100 % nominal amount at maturity. The stable price has very little influence on the value of the bond, but the value of the bond rises as the remaining period to maturity shortens.
… falling underlying prices?
If the price of the underlying share falls, the price of the bond falls as well because the redemption by means of physical delivery of the share is becoming more likely. The fixed coupon is paid in any case.
Index certificates
How do index/participation certificates react to…
… rising underlying prices?
Rising underlying prices mean proportionately rising index/participation certificates. If the ATX increases for example from 4,000 to 4,400 points, i.e. by 10%, the value of the index/participation certificate will also rise by 10% from EUR 40 to 44 (in the case of an exchange ratio of 1:100).
… stable underlying prices?
If the index does not move, the index/participation certificate will not move either.
… falling underlying prices?
Falling underlying prices mean proportionately falling index/participation certificates. If the ATX declines for example from 4,000 to 3,600 points, i.e. by 10%, the value of the index/participation certificate will also decline by 10% from EUR 40 to 36.
Bonus certificates
How do bonus certificates react to…
… rising underlying prices?
When the underlying price rises, investors receive the bonus payment at the end of the term. If the certificate has a cap, the maximum possible payout amount is limited to the maximum amount.
… stable underlying prices?
When the underlying price is stable, investors receive the bonus payment (sideways yield) at the end of the term.
… falling underlying prices?
When the underlying price falls, investors receive the bonus payment at the end of the term as long as the price of the underlying has not fallen to or below the barrier. In the latter case, there is no bonus payment and the certificate follows the performance of the underlying (i.e. losses are possible)..
How do bonus certificates react to…
… rising underlying prices?
When the underlying price rises, investors receive the bonus payment at the end of the term. If the certificate is not capped, investors participate directly in the performance of the underlying once the price of the underlying is above the bonus level.
… stable underlying prices?
When the underlying price is stable, investors receive the bonus payment (sideways yield) at the end of the term.
… falling underlying prices?
When the underlying price falls, investors receive the bonus payment at the end of the term as long as the price of the underlying has not fallen to or below the barrier. In the latter case, there is no bonus payment and the certificate follows the performance of the underlying (i.e. losses are possible).
Discount certificates
How do discount certificates react to…
… rising underlying prices?
With rising underlying prices the discount certificate tends to rise as well, with the cap marking the maximum possible return. This means that in the case of rising underlying prices, the discount certificate approaches its cap.
… stable underlying prices?
With stable underlying prices the discount certificate rises over the course of time while approaching maturity. This happens because the discount of the certificate decreases until maturity, at which point the price of the certificate equals the price of the underlying. This is a prime example of the sideways yield.
… falling underlying prices?
With falling underlying prices, the certificate falls as well. However, since the discount certificate was bought at a discount to the underlying, the loss is lower by the amount of the discount then it would be for the underlying.
Turbos
How do turbos react to…
… rising underlying prices?
With rising underlying prices, the price of a turbo long rises at a disproportionately high level in accordance with the leverage chosen.
… stable underlying prices?
With stable underlying prices the price of turbos is influenced by the financing costs. They fall for a turbo long over time, so there may be a loss.
… falling underlying prices?
With falling underlying prices the price of a turbos long falls at a disproportionately high level in accordance with the leverage chosen.
How do turbos react to…
… rising underlying prices?
With rising underlying prices the price of a turbo short falls at a disproportionately high level in accordance with the leverage chosen.
… stable underlying prices?
With stable underlying prices the price of turbos is influenced by the financing costs. They rise for a turbo short, so there may be gains.
… falling underlying prices?
With falling underlying the price of a turbo short rises at a disproportionately high level in accordance with the leverage chosen.
Warrants
How do warrants react to…
… rising underlying prices?
If the price of the underlying rises and all other variables remaining equal, the value of the call warrant rises disproportionately.
… stable underlying prices?
If the price of the underlying remains stable, the value of the warrant tends to decrease due to the falling time value.
… falling underlying prices?
If the price of the underlying falls and all other variables remaining equal, the value of the call warrant falls disproportionately.
How do warrants react to…
… rising underlying prices?
If the price of the underlying rises and all other variables remaining equal, the value of a put warrant falls disproportionately.
… stable underlying prices?
If the price of the underlying remains stable, the value of the warrant tends to decrease due to the falling time value.
… falling underlying prices?
If the price of the underlying falls and all other variables remaining equal, the value of a put warrant rises disproportionately.