Societe Generale has issued Bonus Certificate with bearish digital coupon, a certificate quoted on the Euro TLX to allow investing in the US equity market as well as in the dollar.
The certificate, issued and traded in dollars, will be indexed against the S&P 500 and will have a five-year maturity.
On maturity, the certificate will allow investors to participate to the performance of the index in case it was positive. In such case, investors will receive 100% of nominal value, equal to $1,000 per certificate, plus the extra obtained by the S&P 500 positive performance.
In case of negative performance, the product resorts to a protection mechanism, Societe Generale also said. If during the investment period the S&P 500 has never scored below 55% of its strike value, the investor will still receive 100% of the certificate’s nominal value. If a value below 55% was hit, then the investor will go long the S&P 500, which means they will receive a total equal to the nominal value for the proportion between the value of the index on maturity and the initial strike value.
The strike value is $1,989, SocGen mentioned.