A structured product that usually pays high coupon payments on an underlying asset (basket of stocks/ indices/ individual stocks). In other words, the product is linked to the performance of an underlying being either the spot price of a single asset or the worst performing in a defined basket of assets. The worst performing asset has the lowest value of all the assets in the basket, where the value of each component is determined as the spot price of the asset at that time / the initial spot price of that asset. Furthermore, this product provides its holder with early redemption at a predefined cash amount and the potential of high coupons.

An autocallable’s performance is observed at regular observation dates (or coupon dates), typically once a year. On each of these dates, the possibility of early redemption and/ or payment of high coupons will be determined based on the performance of the underlying (asset, or basket) against two preset barriers: coupon barrier and autocall barrier.

If the underlying trades at or above the coupon barrier, the coupon is paid. And if the underlying trades at or above the autocall barrier, redemption takes place automatically and the holder receives the predefined monetary sum (or a notional amount), from the issuer. If there is no early redemption, the autocallable continues to the next observation date, with the possibility of early redemption up to that date.