Bonus Enhanced Note
2022-05-23

Take the quotes of Amazon (AMZN US) and Microsoft (MSFT US) for example:

  • If the prices of all linked equities on the final valuation date are higher than the exercise price, investors can obtain absolute interest at least.
  • If the increase in the price of the equity with the lowest price is higher than absolute interest, investors can obtain the yield of the equity with the worst performance.
  • On the contrary, if the price of any of the equities on the final valuation date is lower than the exercise price, no coupons will be distributed.
  • Meanwhile, investors need to purchase the equity with the worst performance at the exercise price.
  • It is suitable in terms of the equities which investors expect to rise for the long term, because investors will possibly benefit from the price increase in equities and a potentially high interest income.