An autocallable yield note (AYN) that is linked to the lowest performing amongst a number of underlyings (e.g., shares). The note does not guarantee the return of principal at maturity (no capital protection is provided) and payment of payoff (coupon) is also not guaranteed. The holder receives a contingent coupon if the note has not been previously automatically redeemed, and also provided that a coupon barrier event has not occurred on an observation date. Contingent coupons are not like ordinary periodic interest payments.
Payment of the contingent coupon will be effected immediately following a contingent coupon payment date to the tune of a minimum an amount or annual percentage (to be determined on the trade date) per $1,000 principal amount of the note/ notes (par value of the note/ notes).
In another scenario, if a coupon barrier event has occurred on an observation date, the holder receives no contingent coupon with respect to the respective observation date.
Comments