Standard
Commercial names
Credit Linked, Opportunità Corporate, Opportunità Italia
Characteristics:
- Payment of periodic proceeds during the life of the certificate in absence of credit events involving the underlying asset
- Conditional capital protection
Return profiles
| Maturity | 3 - 5 years |
| Investment horizon | Mid/long term |
| Aim | To obtain periodic proceeds linked to the underlying asset’s credit risk |
| Strategy | Neutral |
| Capital protection at maturity/Risk | Protection of the invested capital at maturity in absence of credit events involving the underlying asset |
Learn more
Investment certificates are financial products characterized by a number of features. They may simply replicate the underlying asset’s upward movements or downward movements, or they may be structured so as to implement more sophisticated strategies, which may include total or conditional capital protection against bad performances of the underlying asset.
Some certificates’ characteristics may also allow the owners to obtain proceeds during the life of the certificate, under condition that specific events take place. A premium may be paid at maturity under form of additional proceeds in case the underlying asset’s price does not drop under the barrier (this is the case, for example, of bonus certificates).
The return on investment in some typologies of certificates may be determined by both the changes in the underlying asset’s price and the absence of such price movements for a timespan shorter than the life of the contract. These certificates pay a sort of premium for early redemption in case the underlying asset’s price is above a certain level on pre-arranged dates.
Moreover, some certificates feature an additional element, useful in periods of strong fluctuations of exchange rates – a protection against unfavourable changes in currency value. Products offering such protection, called “Quantum”, make it possible to invest in underlying asset’s denominated in a foreign currency avoiding exposure to the risks linked to exchange rates.
Performance drivers
Reactivity of the certificates’ prices to changes in key variables.
| Variables | Issue | Barrier** | Life residual*** |
 Underlying asset’s price |  | | |
| Volatility | | | |
| Time* |  | | |
| Interest rates |  | | |
| Dividends | | | |