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KICS-Direct®
Knock-In reverse Convertible Securities Direct to the broker-dealer community.
Knock-In reverse Convertible Securities are short-term investments, generally
9 months to 1 year, which can generate a relatively high coupon in relation to
other fixed-income investments over the same term. Coupons are generally in the
range of 8% to 15%.
At maturity, the investors receive either the original investment
back in cash or a predetermined number of shares equal to the original investment divided
by the share price on Trade Date.
The Knock-In feature, set generally 20% to 30% below the original stock price, provides a
degree of protection for receiving 100% of the original investment if the underlying stock
never breaches that level over the life of the transaction until maturity.
The protection for KICS-Direct® is in the form of a short put option that only
"knocks-in" if the underlying shares touch the barrier level.
If the Knock-In level is breached and the underlying stock value does not return to Par at maturity, the
investor will receive shares that will be worth less than the original investment value.
These securities are ideal for those looking for high current income while willing to take
the risk the selected equity won't breach the Knock-In level.
Natixis Securities North America ("Natixis") works directly with the Broker-Dealer community and does not represent
competition to the financial advisors of any broker-dealer as Natixis has no U.S. distribution. Natixis utilizes
high credit quality issuers for distributing its KICS-Direct® product. When working with Natixis, you are telling
your clients they are getting pricing direct from a non-competing provider and from a high credit quality,
US-registered issuer.
KICS-Direct® are sold under prospectus only and may only be purchased through a participating broker-dealer.
Assumptions
| Security: |
12% KICS-Direct® due in 1 year |
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| Maturity: |
1 Year from Issue Date |
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| Underlying Shares: |
XYZ stock |
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| Coupon: |
per annum |
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| Investment: |
$1,000 |
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| Initial Stock Price: |
$50.00 |
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Protection
Level: |
80% of Initial Stock Price ($40.00) |
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| Share Redemption Amount: |
$1,000 / $50 = 20 shares |
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Risk Factors
Structured Investments are sold by prospectus only. For more information
on the risk factors involved in investing in structured investments, click here.
See Important Risk Disclosures. click here for details.
For more information about KICS-Direct®, click here.
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