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Credit Suisse Launches Deep-Barrier Euro Stoxx 50 Products
First-Ever Issue of Equity-Linked Products with 80% Risk BufferCredit Suisse today announced the launch of new structured products with ultra-deep barriers of 20% on the Euro Stoxx 50 Index. With an 80% risk buffer, Credit Suisse's new conservative, interest-bearing solutions enable investors to benefit from rising interest rates and equity markets.
Credit Suisse has launched new structured products with ultra-deep barriers of 20% on the Euro Stoxx 50 Index. Credit Suisse is the first bank to offer equity-linked products with an 80% risk buffer. The products are conservative, interest-bearing solutions and their structure offers a unique investment opportunity. The subscription period for the products will be open until March 3, 2011 at 12:00 CET. After that time, they can be traded on the secondary market.
Floored Barrier Reverse Convertible – Benefit from Rising Interest Rates with a High Risk Buffer
At just 20% of the start level, the new Floored Barrier Reverse Convertible on the Euro Stoxx 50 Index has a very low barrier. In other words, it would take an 80% price drop to breach the barrier, which provides investors with an extremely low risk of loss. Even in the wake of the new economy bubble bursting and during the recent financial crisis, the hit sustained by the Euro Stoxx 50 was significantly less than the 80% risk buffer built into these products. If the barrier is not breached, investors will recoup at least their initial investment in March 2017 (subject to issuer risk). The product offers an attractive annual coupon, which will always exceed the relevant reference interest rate in the various currencies. If interest rates trend upward during the six-year term of the product, the coupon will also benefit from a quarterly upward adjustment. However, the product will offer an attractive minimum coupon (floor) at all times. The Floored Barrier Reverse Convertible will be issued in Swiss francs, euros and US dollars. An application has been submitted for listing on the Swiss Exchange. The Swiss Security Numbers are 12 448 567 (CHF, Ticker: CFBRC), 12 448 566 (EUR, Ticker: EFBRC), and 12 448 568 (USD, Ticker: UFBRC).
Bonus Certificate with Coupon – Participation and Coupon with a Comfortable Cushion
The new Euro Stoxx 50 Index Bonus Certificate with Coupon also has a deep barrier – at just 20% of the start level – keeping the risk of capital loss to a minimum. If, following the six-year term, the barrier has not been breached, investors will recoup at least their initial investment (subject to issuer risk). If the value of the index in March 2017 exceeds its start level, investors will also enjoy one-to-one participation in the price increase. A fixed annual coupon will also be paid out to investors. The Bonus Certificate with Coupon will be issued in euros and US dollars. The Swiss Security Numbers are 12 448 569 (EUR) and 12 448 570 (USD).