UBS reverse convertible breaches barrier as Research In Motion shares plummet

The dramatic fall in the price of Research In Motion shares has inflicted capital losses on investors who took a stake in this six-month reverse convertible from UBS. Stability towards the end of the term was not enough to keep the underlying from sliding by less than 1% below the European 70% barrier. Reasonably high coupons mitigated the losses


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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here