Product catalog
Our products in subscription - informative and at a glance
Go to the product catalog
Reverse convertibles offer short maturities and above-average fixed returns in sideways moving markets. They combine the features of equities with those of traditional bonds.
Investing in reverse convertibles
Payoff profiles
The payoff profiles show the profit or loss of an investment,
if the underlying rises or falls.
Product features at a glance
- Reverse convertibles offer a fixed, interest rate regardless of the performance of the underlying asset(s).
- Short term of one to two years.
- Opportunity to generate an interesting return despite low interest rates or sideways trending markets.
- Depending on the product variant, reverse convertibles offer partial protection against possible price losses of the underlying.
- Bonus pro reverse convertibles offer the chance of an interesting bonus at maturity. No interest is paid during the term.
- The return is limited to the coupon payment or to the bonus (in the case of bonus pro bonds), even if the underlying performs better.
- The repayment of the nominal amount depends on the performance of the underlying. In case of delivery of shares, the equivalent value of the shares is lower than the nominal amount of the bond. Capital loss up to total loss is possible.
- During the term, the share price does not fluctuate 1:1 with the underlying and premature sale may lead to capital loss.
- Investors bear the credit risk of the issuer, i.e., the risk of changes in creditworthiness or insolvency.
- This security is not covered by any deposit insurance scheme. Investors are exposed to the risk that Erste Group Bank AG may not be able to meet its obligations in the event of insolvency (illiquidity, over-indebtedness) or an official order (bail-in regime). There is a possibility of a total loss of the capital invested.