At comdirect Bank, clients can currently subscribe to a reverse convertible with Protect Pro features issued via HSBC. This reverse convertible bond on Wirecard shares carries a fixed interest rate of 10.5%. This is significantly more than is the case with many other reverse convertible bonds of this type.
The Wirecard Protect Pro reverse convertible bond from HSBC can be subscribed from September 21, 2018. Customers with an account with comdirect Bank can subscribe to this bond until October 15, 2018. It should be noted that HSBC is the issuer of the bond. Anyone looking for the bond in the comdirect Bank system can find it here under the abbreviation TD9SKZ.
What advantages and opportunities does the bond on Wirecard?
The company Wirecard has recently been included in the DAX leading index and is therefore interesting for many bonds. This bond can be subscribed from a fixed price of 100% and from EUR 1,000 per bond. The interest yield on the bond is 10.5% per annum. These are paid regardless of how the underlying value of the bond develops. The safety buffer paid on this bond is 20%, which is significantly higher than on many other bonds. At the same time, the safety buffer can ensure that the repayment is secured at the end of the term. The barrier will only be observed on 18 October 2019. This means that it may well be the case that the share will increase in value in the meantime, or even lose value. The term of this bond is just 12 months and is therefore particularly short. The bond can be traded flexibly and offers a daily sale opportunity.
What risks are associated with the reverse convertible bond with comdirect Bank?
The risks associated with a bond of this type should not be underestimated under any circumstances. The maximum yield that can be achieved here is limited to the coupon. There is no capital protection on this bond. If the barrier is touched or even breached on the valuation day, the investor participates in the performance of the underlying asset in a ratio of 1:1. It is quite possible that the underlying value of the share lies clearly below the nominal value of the bond.
In addition, the entire investment and also the share are exposed to the influences of the market during the term. That means that the influences can be positive as well as negative. The interest level can be likewise volatil and it is possible that the value of the bond can develop thereby negatively. Investors also bear the issuer risk of HSBC.
What do I need to be able to subscribe to this bond?
If you want to trade or subscribe to the reverse convertible bond on Wirecard AG, you will need a securities account with comdirect Bank. This securities account can be opened directly via the Internet and can also be managed online. It should be noted that comdirect Bank offers both a custody account and a current account. Anyone concluding or managing both products in parallel can benefit from the fact that they can, of course, also manage them in parallel free of charge or without fees. The settlement account provided by the bank can also be used free of charge and is recommended.
In practice, comdirect Bank offers its customers a very large selection of trading options. Who is interested in the bank will determine that there is the possibility of opening the depot as action customer, and/or with an action for new customers. Usually there are e.g. actions, with which the depot transfer is recompenced, or in addition, with which accordingly for the first 6 months after the depot opening the fees for the trade are clearly reduced. In the long term, it is therefore conceivable that any amount of money can be saved if you want to buy stocks directly after opening a securities account.
What does trading via comdirect Bank offer me?
The securities account of comdirect Bank offers numerous attractive trading options. Who opened the depot, can trade with this without problems shares, in addition, other securities. The comdirect Bank supports both national and international securities trading. The bottom line is that traders profit from the fact that they can enter trading worldwide in any case with comdirect trading.
In addition to exchange trading, off-exchange trading is also supported. There is an option to trade around the clock. Naturally also well-known stock exchange places, like for example Xetra or in addition, Tradegate are supported, over which problem-free shares can be traded.
Over the comdirect bank the customers can trade among other things shares, in addition, funds, ETFs or even CFDs. Fund trading is particularly in demand at the bank. There is the option that more than 10,000 different funds can be traded at comdirect Bank. For many funds, the bank offers a discount of 50% or even 100% on the issue premium. It should also be noted that the bank offers funds again and again, for example as savings plans. This is the case with funds, but also with ETFs.
The selection of ETFs at comdirect Bank is also very extensive. This means that several hundred ETFs can be traded and a large part of the ETFs can also be subscribed to as a savings plan. Savings plans can be subscribed from a sum of 25 euros per month. The customer can choose whether he wants to save on the savings plan on a monthly basis, for example, or also every two or three months. In principle, comdirect Bank thus offers its customers a very extensive portfolio of products.
The service provided by comdirect Bank is also very extensive and exemplary. Customers can work with the employees of comdirect Bank by telephone, e-mail or chat. The telephone service is available 24 hours a day, 7 days a week and is rated as very good.