Earn 8.9 percent p.a. with a stock bond on Siemens – Who is the product worthwhile for?

Earn 8.9 percent p.a. with a stock bond on Siemens – Who is the product worthwhile for?

According to a report by www.boerse-online.de,
With a reverse convertible bond on Siemens shares, investors and savers can now earn high interest rates of up to 8.90 percent p.a. The bond even runs for two years and therefore offers a lot of interest. The reverse convertible bond, issued by HSBC under the WKN: HS44PN, offers interest of up to 8.9 percent per year in the best case scenario. The repayment depends on the price of the Siemens share on the valuation date, January 16, 2026. If the price is at or above 160.00 euros, investors receive interest and the capital invested. If the price is below this, losses may occur.

The product is suitable for investors who are betting on a sideways or slightly positive trend in Siemens shares. It offers an alternative way to earn high interest, especially in light of falling overnight interest rates.

The stock bond was not issued by Siemens, but by HSBC and only relates to Siemens shares. Investors can take the interest with them and sell the bond in between, so they don't have to hold it for two years.

The report points out that the securities offered are bearer bonds, where the investor may bear a significant risk of loss of capital. It is recommended that you carefully review the risks and product conditions.

The issue of a reverse convertible bond with 8.9 percent interest on Siemens shares and the possibility of selling the bond early could lead to investors investing more in this product. This could increase demand for Siemens shares and have a positive impact on the price, at least in the short term. The falling overnight interest rates could also lead to investors increasingly looking for alternative investment options, which could increase interest in reverse bonds. Consumers could benefit from the ability to earn higher interest rates while risking capital loss. The structured securities industry could see increased activity and sales volumes. This could also encourage other issuers to launch similar products to capitalize on increased investor interest.