UBS reverse convertible short on tenor but high on volatility

Short and very sweet


UBS has issued two reverse convertible notes linked to stocks with high volatility. The first is linked to the common stock of Alpha Natural Resources, and the other to the stock of Research in Motion. These are six-month income products offering monthly income streams with high annualised rates of return. The initial investment is at risk if the final-level barrier is breached on the final valuation date.

Reverse convertibles generally pay a fixed income while placing principal at risk, the rep

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