Home About Setipa Europe Members Media Contact us Categorization/Education    Reverse convertible Reverse convertible is a yield enhancement tool to follow rate movements in an underlying asset, usually an equity or equity index. A reverse convertible has a limited duration and provide for the expiration date at a fixed rate of return. Market Expectations • Underlying moving sideways or slightly rising • Declining volatility Properties • Should the underlying close below the Strike at expiry, the underlying and/or a cash amount is redeemed • Should the underlying close above the Strike at expiry, the nominal plus the coupon is paid at redemption. • The coupon is always paid, irrespective of the development of the underlying • Reduced loss potential compared to a direct investment • Larger coupons can be achieved at a greater risk if the product is based on multiple underlyings (multi-asset) • Any payouts attributable to the underlying are used in favour of the strategy • Limited profit potential (Cap) If you want to learn more about this instrument, you can do it at www.ndx.se/education/. Produkt kategorisering Leverage products Participant products Yieldenhanced products • Reverse convertible • Maxcertificate • Expresscertificate/Autocall Capital protected products Copyright © SETIPA 2011 | villkor Swedish Exchange Traded Investment Products Association