Identification
- Label (rdfs)
- Outperformance Bonus Certificate
- Preferred Label
- None
- Alternative Labels
- N/A
- Identifier
- N/A
Definition and Examples
- Definition
- An Outperformance Bonus Certificate is a financial instrument that allows disproportionate participation in the positive performance of the underlying asset or assets above a certain strike level, combined with protective features. The minimum redemption value is equal to the nominal value, provided a specified barrier has not been breached; if the barrier is breached, the product converts into an outperformance certificate. With greater risk, multiple underlying assets (worst-of) allow for a higher bonus level or lower barrier, offering reduced risk compared to a direct investment in the underlying assets.