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
 
Investment Products with Reference Entities: Reference Entity Certificate with Participation (1430)
 
 
 
Market expectation
  • Increasing underlying
  • No credit event of the reference entity
Characteristics
  • There are one or more reference entities underlying the product
  • In addition to credit risk, redemption of the product is subject to the solvency (non-occurrence of a credit event) of the reference entity
  • If a credit event occurs at the reference entity during the life time, the product will be redeemed at an amount corresponding to the credit event
  • The product value can fall during its lifetime, among other things due to a negative assessment of reference entity creditworthiness
  • Participation in development of the underlying, provided a reference entity credit event has not occurred
  • In addition, the product can feature a barrier
  • The product allows higher yield at greater risk