A phoenix autocall that has no memory. In other words, it is an income product (income-paying structure) that provides a potential payout, not just on its maturity date, but also on specific dates, subject to specific conditions being met.

The overall structured is not accompanied with a memory feature, that is, on any of the annual dates over its lifespan, two independent observations (one with respect to a coupon barrier, and one to an autocall barrier) take place:

• If the underlying price is equal to, or larger than, the coupon barrier, the autocall will pay out a coupon for that particular year. Otherwise, no coupon will be paid.
• If the underlying price is equal to, or larger than, the autocall barrier, the structure will redeem early, and the holder receives the full amount of principal. Otherwise, it will continue to the year ahead.

If at maturity, in the case of no early redemption, the final asset price is equal to or larger than the coupon barrier, the autocall will pay out a coupon for the final year. And if at maturity, the final asset price is below the coupon barrier, no coupon will be paid.

For the principal amount (capital invested), ff the final asset price is equal to or larger than the autocall barrier, the holder receives the full amount of principal back. And if the asset price ticked always above the risk barrier over the product’s lifespan, but the final asset price on the maturity date ended below its initial level, the holder will still receive the full of principal back. However, if the asset price dropped below the risk barrier during the investment term and the final asset price on the maturity date ended lower than its initial level, the holder may lose all or part of the principal amount. The part of the principal amount that will be repaid will be proportionate to the drop-adjusted asset price over the course of investment term.

This autocall is also known as a phoenix autocall without a memory.