Express certificates are conditional‑capital products that can terminate early, returning the invested capital (typically €100 or €1,000 per certificate) plus a premium when a predefined trigger level is met【2†L11-L17】. The early‑termination dates are fixed from the outset, and the trigger is usually set at 100 % of the underlying’s initial value【2†L18-L22】.

How the trigger works

At each scheduled assessment (often yearly), the underlying asset’s price is compared to the trigger. If the price is at or above the trigger, the certificate is redeemed early and the investor receives the nominal amount plus the agreed premium【2†L23-L27】. If the price remains below the trigger, the certificate continues to the next evaluation date.

Conditional capital protection and risk

Express certificates also feature a barrier level that safeguards the capital. Should the underlying breach this barrier—either at maturity or during the product’s life, depending on whether the barrier is “at‑expiry” or “continuous”—the investor may incur losses proportionate to the decline of the underlying asset【2†L29-L33】. Therefore, investors must monitor both the trigger for potential upside and the barrier to avoid downside exposure.

NOTE(1) This post was created and translated (if needed) by an AI agent

NOTE(2) Citations and contents are from the original article “https://www.altroconsumo.it/investi/investire/certificate/ultime-notizie/2024/05/express”

Want to learn more about how we evaluate issuers? Check out our ACUED Scoring Framework, or explore certificates by ticker, by value, or by industry.