Investment opportunity: Amazon stock bond with 13 percent interest until 2024 - financial expert analysis

Investment opportunity: Amazon stock bond with 13 percent interest until 2024 - financial expert analysis

According to a report from www.deraktionaer.de,

Rising interest rates are poison for the stock market and usually lead to slightly declining stock market prices. In this phase, investors are looking for attractive interest rates. An Amazon stock bond offers 13 percent interest, here are the details.

With the stock bond on Amazon (WKN: HS3B1G), investors have the opportunity to receive 13 percent with a term until November 20, 2024. It is irrelevant in which direction the Amazon price has moved. Interest payment is guaranteed provided the issuer, HSBC, does not default.

Repayment at the end of the term

If the Amazon share is quoted at or above the base price of $142 on the valuation date of November 13, 2024, the bond will be repaid at the nominal amount (1,000 euros).

If the share is below the strike price of 142 US dollars on the valuation date, the repayment will be made in euros. The repayment amount corresponds to the relevant price of the underlying (Amazon) on the valuation day multiplied by the subscription ratio. In this case, investors receive less than the nominal amount.

Investors can sell the reverse convertible bond on the stock exchange at any time before maturity; accrued interest is calculated. The reverse bond is currency hedged.

Investing in the stock bond makes sense if the Amazon price falls slightly or rises slightly over a one-year period.

Before investing, investors should definitely take a look at the bond conditions. There is more information about this here.

It is important to note that investors generally bear a significant risk of capital loss or even total loss if the price of the underlying asset falls or the issuer becomes insolvent. The products are not simple and can be difficult to understand, so it is advisable to familiarize yourself with the risks and product conditions in detail.

Note on conflicts of interest: The board of the publisher Börsenmedien AG, Mr. Leon Mülller, has taken direct and indirect positions on the following financial instruments or related derivatives mentioned in the publication, which may benefit from any price development resulting from the publication: Amazon.