Customers of comdirect can currently still use an offer from UBS which promises an interest rate of 7.5% and is attractive in any case. In cooperation with UBS, comdirect Bank offers its clients the option of concluding a certificate with 7.5% interest on a Lufthansa reverse convertible PLUS from UBS.
This is a certificate that is advertised as a new issue. Anyone interested in the product can subscribe to it between 15 December 2017 and 15 January 2018. It should be noted that comdirect customers can find the product in the system under the WKN UBS58A.
What opportunities does the reverse convertible with certificate on Lufthansa PLUS from UBS?
The subscription of the investment is possible at a fixed price of 100%, starting at a value of 1,000 euros per bond. It should be noted that the interest yield is 7.5% p.a., regardless of how the bond develops itself or how the underlying asset develops. The safety buffer is 15% and can secure a repayment at maturity. It should be noted that the risk is reduced by observing the barrier on 18 January 2019. The term of the investment is 1 year and it is possible that it can be traded flexibly. The investment is tradable on a daily basis or can be sold.
What risks does the Lufthansa PLUS certificate from UBS?
offer? There are some risks that have to be considered in such an investment. The maximum return is limited to the coupon of the investment. There is no capital protection. This means that if the bond touches or even falls below the barrier on the valuation date, the investor participates in the performance of the underlying asset at a ratio of 1:1. The value of the delivery of the underlying asset may be significantly lower than the nominal value of the bond.
Throughout the life of the bond, the reverse convertible may be exposed to market influences. This means, for example, that changes in the share price or the volatility of the interest rate level must be taken into account. These changes can lead to a negative development in the value of the bond. UBS’s issuer risk is also borne by investors in this offering.
What does comdirect Bank offer its customers?
The comdirect Bank currently offers its customers an attractive custody account that can also be managed free of charge in combination with the free checking account. It should be noted that the product can be supplemented by a free call money account and a free credit card.
In general, it should be noted that comdirect Bank offers its customers excellent conditions. In many cases, customers benefit from the fact that they receive a high discount on the issue premium during the first 6 months of stock trading, for example. It should also be noted that comdirect Bank partly pays its customers premiums for the transfer of securities accounts from another bank to comdirect Bank. It is therefore particularly worthwhile for new customers to always pay attention to the corresponding costs and whether comdirect Bank is currently offering current promotions.
With comdirect Bank, customers can not only trade shares, but also lots of funds and ETFs. Customers can also trade CFDs via comdirect Bank’s securities account. It should be noted that customers have access to many domestic and foreign markets. The bank also offers its customers the option of off-exchange trading. Anyone researching the network will notice that comdirect Bank always offers very good conditions in fund trading. Many funds advertise the fact that there is a high discount on the initial sales charge. Of course, this attracts customers and contributes to massive investment in funds, especially as comdirect Bank has considerably more funds than other banks. At present there are more than 10,000 different funds, which can be locked with the bank, and/or traded.