Power Reverse Convertible

Investing
Beta Returns
February 20, 2023
Derivatives
UCOM
February 20, 2023

An equity structured product (and a reverse convertible) that provides an enhanced coupon. Coupon enhancement (yield enhancement) is typically done by the investor writing a put option against a very large premium on the worst performing share in the basket of shares (usually 2 to 4 stocks). It redeems the worst-of if the worst performing stock drops below the strike price.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts