Leonteq is expanding its range of listed products to include crypto-currencies. In addition to a total of 17 tracker and actively managed certificates, the expert for structured investment products is expanding its range with new SIX listed reverse convertibles.
In addition to the Reverse Convertible already listed, Leonteq AG is issuing two new products with a maturity of 6 months from today's date of issue. The products available for subscription have coupons of 15.75% and 11.4% respectively, with corresponding strike prices of USD 9,000 and USD 8,000.
Reverse convertibles for Bitcoin
| Coupon (p.a.) | Underlying value | Exercise price | Currency | Expiration | Valor |
| 15.75% (31.50% p.a.) | Bitcoin | USD 9’000 | USD | 23.12.2020 | 55528568 |
| 11.40% (22.80% p.a.) | Bitcoin | USD 8’000 | USD | 23.12.2020 | 55528569 |
| 11.44% (20.00% p.a.) | Bitcoin | USD 7’000 | USD | 23.12.2020 | 54665596 |
(Exchange-traded on the Swiss stock exchange)
How does a reverse convertible work?
Reverse convertibles on Bitcoin offer investors a guaranteed coupon payment at maturity. If the Bitcoin price closes at or above the respective exercise price at the end of the term, the investor receives back the full nominal amount. If the Underlying trades below the respective Strike Price at maturity, the repayment is based on the performance of the Underlying.
Which scenario are the products suitable for?
You expect the Bitcoin price (XBT CFIX Curncy) to close at or above the respective strike price on the Final Fixing Date, in which case you will receive the maximum return.
How the Coupon works
The guaranteed coupon is paid out at the end of the term regardless of the price development of the Bitcoin.
Repayment on expiry
- If the Bitcoin price is quoted at or above the respective exercise price, the investor will receive a repayment of 100% plus the coupon.
- Otherwise, if the Bitcoin price is below the respective exercise price, the Investor will receive a denomination reduced proportionally to the negative performance of the Bitcoin based on the exercise price plus the Coupon.
Risks
- During the term, fluctuations in the value of the product may be higher than the corresponding fluctuations in the value of the Bitcoin.
- The Investor may suffer losses equal to the negative performance of the Bitcoin below the strike price, but in any case the Investor will receive the Coupon paid out.
- The maximum return is limited to the Coupon amount.
- Waiver of current income such as dividend payments.
- The investor bears the credit risk of the Issuer.
