FVC retrospective: UniCredit’s reverse convertible on Deutsche Bank stock matures

UniCredit’s April 2013 reverse convertible linked to Deutsche Bank stock, which offered sizeable protection, has matured, paying investors a healthy total return of 109.5% including capital – though a direct holding in the stock would have returned 111.22%, finds Future Value Consultants

Investors in UniCredit Bank's two-year reverse convertible bond linked to the common stock of Deutsche Bank, which struck on April 26, 2013 and matured on April 9, 2015, are celebrating healthy gains.

The product offered a 4.75% annual coupon, paid regardless of the performance of the underlying. The amount of capital returned to investors was dependent on whether a 60% European-style barrier had been breached at the end of the product's term. If, on the final valuation date, the stock price was