Bonus Certificate CH0239961847 – Advertising on Swiss Newspaper Websites

The latest in the Credit Suisse series of ads for structured products (complex products). The two screenshots below are what you would see just above the headlines on the newspaper website:bonus-zertifikat-2 bonus-zertifikat-1bonus-zertifikat-3

Who are bonus certificates for?

Market Expectation

  • Underlying moving sideways or rising
  • Underlying will not breach barrier during product lifetime

23996184_termsheet_EN  payoff-diagramm-bonus-certificate

If no Barrier Event has occurred, a cash amount equal to the Denomination multiplied by the greater of (a) the Conditional Protection and (b) the sum of (x) the number one (100%) and (y) the Participation multiplied by the difference between (A) the Final Level divided by the Initial Level and (B) the number one (100%), calculated by the Calculation Agent in accordance with the following formula:

bonus-certificate-formula

If a Barrier Event has occurred, and (a) the Final Level is at or above the Initial Level, a cash amount equal to the Denomination multiplied by the sum of (x) the number one (100%) and (y) the Participation multiplied by the difference between (A) the Final Level divided by the Initial Level and (B) the number one (100%), calculated by the Calculation Agent in accordance with the following formula:

bonus-certificate-formula-2

(b) the Final Level is below the Initial Level, a cash amount equal to the Denomination multiplied by the Final Level divided by the Initial Level, calculated by the Calculation Agent in accordance with the following formula:

bonus-certificate-formula-3

Valor 23996184
ISIN CH0239961847
RIC CH23996184=CSZH

Dangers of Bonus Certificates

These graphs show the dangers of (multiple) bonus certificates nicely: Just one of the three underlying equities touched its barrier (Credit Suisse). Roche is up over 85% and Zurich is up 20%. However if you invested 1000 in this product you will loose 20% as Credit Suisse stock is down that much and the bonus certificate turned into a tracker certificate of the underlying that touched its barrier.

dangers-of-bonus-certificates dangers-of-bonus-certificates-2

Swiss Sec. Number / ISIN 12 928 937 / CH0129289374 (WKN: CLA1RJ)
Ticker MBCZR

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