11% interest p.a.: Stock bond on adidas – return opportunity or risk? Find out whether the product is worth it for you.

11% interest p.a.: Stock bond on adidas – return opportunity or risk? Find out whether the product is worth it for you.

According to a report by www.boerse-online.de, investors can now earn up to 13.84 percent interest per year with a stock bond on Adidas. The stock bond with the WKN: HS468Z offers secure 11 percent interest per year on the sporting goods manufacturer's shares and even enables a total return of up to 13.84 percent by the beginning of next year. The return depends on whether the Adidas share price is above or below the strike price on the valuation date.

The equity bond on Adidas is suitable for investors who expect a sideways trend or a slight upward trend for Adidas. Interest serves as a slight buffer against price losses, but does not offer absolute security. Compared to dividends, reverse bonds offer a significantly higher return, but also involve risks.

The interest is neither paid by Adidas nor is it a corporate bond, but is issued by the issuer HSBC and relates exclusively to Adidas shares. With a reverse bond, it is important to pay attention to the price on the valuation date in order to fully recover the capital.

If you analyze the facts, it turns out that the equity bond on Adidas offers an opportunity to achieve attractive interest rates, but is associated with certain risks. The price development of Adidas shares can influence the overall return, which could result in investors suffering some losses. This form of investment is therefore more suitable for risk-taking investors who expect Adidas' share price to be stable or slightly rising.

It is important that investors fully understand the risks and terms of this equity bond and seek professional advice if necessary. Investors who would prefer to take less risk should consider alternatives such as overnight or fixed-term deposits.