Principal is 100% protected at maturity, subject to credit risk. If the underlying is above the strike level of 100% then the investor has a participation rate of 130%. Since this is added to 100% of the principal amount this represents the potential return for the investor.
This basket of underlyings is used by Credit Suisse in several products, with the five components as follows: S&P 500 (50%), iShares Barclays Tips Bond Fund (25%), iShares MSCI EAFE Index Fund (10%), SPDR Gold Trust (10%) and
The week on Risk.net, July 7-13, 2018Receive this by email