Categorization
The SSPA categorization model consists of three hierarchy levels. On the top level the model distinguishes investment products from leverage products. These two main categories are made up of five product categories on the second level, ranging from the low-risk capital protection products to the higher risk leverage products with knock-out.
On the third hierarchy level, each of these five product categories comprises a number of specific product types. These product types illustrate how a single structured product functions by means of its respective payoff diagram. The descriptions also provide further information on the investor's market expectations as well as product-specific characteristics.
 
Monthly updates
Date Title Download
05.10.2012 Categorization model PDF
05.10.2012 Description of product types PDF
05.10.2012 Additional features PDF
05.10.2012 Graphics of all product types ZIP
 
Yield enhancement products: Express Certificate (1260)
 
 
 
Market expectation
  • Underlying moving sideways or slightly rising
  • Decreasing volatility
  • Underlying will not breach Barrier during product lifetime
Characteristics
  • Should the underlying trade above the Strike on the observation date, an early redemption consisting of nominal plus an additional coupon amount is paid
  • Offers the possibility of an early redemption combined with an attractive yield opportunity
  • Smaller risk of loss than with direct investment in the underlying
  • With higher risk levels,  multiple underlyings (Worst-of) allow for higher coupons or lower barriers
  • Limited profit potential (Cap)