Express Certificate

This type falls in the yield enhancement category of structured products.

There are several evaluation dates during the certificate contract. The strike prices of the underlying asset and coupons are linked to these dates. The interest rate of each subsequent coupon is higher than the previous one. If the price of the underlying asset on the evaluation date is higher than the strike one or is equal to it, the certificate expires automatically, and the investor is paid the face value and the coupon. If the price of the underlying asset is higher than the strike price or is equal to it on none of the evaluation dates, the expiration depends on reaching the barrier by the underlying asset. If the price of the underlying asset hasn’t reached the barrier on the expiration date, the face value and the coupon is paid. Otherwise, the investor absorbs losses equal the relative dynamics of the underlying asset price.