UBS reverse convertible breaches barrier as Research In Motion shares plummet

Disappointing harvest


This UBS six-month reverse convertible was linked to the common stock of BlackBerry maker Research In Motion. The product was reviewed in the June 2013 issue of Structured Products and paid a monthly income with an annualised coupon of 27.27% - equivalent to 13.635% throughout the term. Reverse convertibles offer the best returns when volatility levels are high because the premium generated from selling the put option is at its highest.

While the high headline yield was tempting, the investment

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