BLOC

Underlying: Barrick Gold SSPA/EUSIPA Product Type: Discount Certificates (1200) SIX symbol: ABXUXU / Valor: 37887890 / ISIN: CH0378878901

Last update 08.12.2017
  • Bid

    13.30 USD
    Volume: 100'000

  • Ask

    13.40 USD
    Volume: 100'000

Key figures

Cap absolute17.50 USD
Sideways return1.87% / 2.64% p.a.
Spread0.10 USD / 0.75%
Days to expiry254
Trading placeSIX SP Exchange
Settlementphysical

Tax information Switzerland

Withholding taxNo
Swiss income taxNo
Stamp taxNo

Product calendar

Fixing date23.08.2017
Last trading date22.08.2018
Expiry22.08.2018

Discount information

Discount1.83%
Discount absolute0.25 USD

SSPA risk figures

SSPA risk classHigh (5)
SSPA VaR18.97%
SSPA risk calculated on07.12.2017

UBS BLOC

A UBS BLOC (Buy Low Or Cash), also known as a discount certificate, enables investors with a moderate-to-high risk tolerance to obtain a price reduction when purchasing a selected underlying asset (e.g. index, equity, currency pair or precious metal). The more favorable entry results in a return benefit so that attractive returns are possible even in a sideways moving market.

Participating in price increases is limited: as soon as the price of the underlying asset trades at or above the cap level at maturity, the UBS BLOC will yield the anticipated return. The price reduction granted at the beginning results in investors benefiting from a safety buffer. Buyers of a UBS BLOC are almost always in a better position when the prices of the underlying asset fall than direct investors are, as they usually suffer fewer losses in terms of percentage.

However, the reduction in price is not full protection at maturity. If the underlying asset trades below the purchase price paid for the certificate there will be a loss in the capital invested. If the underlying asset closes below the cap level at maturity, the repayment is linked directly to the price of the underlying asset. The investor is then either paid the value of the underlying asset or the cash value of the underlying asset adjusted by the subscription ratio. In addition, the issuer risk must be taken into consideration, since the invested capital could be lost if UBS AG becomes insolvent, irrespective of the performance of the underlying asset.

A more detailed product description is available in our brochure "Knowledge in a nutshell".