Accelerated Return Equity Securities (ARES)

A variation on the Equity-Linked Note  with a stock-like return on the downside and multiplied equity participation from the strike price on the embedded call option up to a cap. Its performance corresponds to the underlying index below the strike and multiplies the participation between the strike and the cap. Beyond a breakeven point where the index return matches the cap return, the index will outperform.

© Copyright 1996, 1999 Gary L.Gastineau. First Edition.
© 1992 Swiss Bank Corporation.