MERITZ Securities noted that it will launch 8 types of mobile trading system (MTS)-dedicated equity-linked securities (ELS) on the 2nd. There are 4 index-type and 4 stock-type securities.
The underlying assets for the index-type products include four major global indices: Standard and Poor's (S&P) 500, Euro Stoxx 50, KOSPI 200, and Nikkei 225. The principal loss condition for the knock-in barrier is set at 40-45%, with an annual revenue of 7.0-9.5%.
The stock-type products were launched with three underlying assets: NVIDIA, Tesla, and Palantir. Given the increased volatility in the U.S. stock market, the knock-in barrier for principal loss conditions has been conservatively set at 30%.
The 8 types of ELS being launched this time have a maturity of 3 years, with an early redemption opportunity provided every 6 months, following a step-down structure. There is one monthly payment-type ELS and one lizard-type ELS included as well.
Excluding the monthly payment-type ELS that receives revenue every month, the other 7 types of ELS ensure that, even if early redemption does not occur, investors will receive a total of 3 years' worth of interest and principal if the closing prices of all underlying assets on the maturity evaluation date are above the maturity barrier or if none of the underlying assets have dropped below the knock-in barrier even once.
However, if the closing price of the underlying assets on the maturity evaluation date is below the maturity redemption barrier and any one underlying asset has dropped below the knock-in barrier during the investment period, a principal loss may occur.
Applications for ELS can be made from today until 12 p.m. on the 13th (for investors requiring contemplation, until the 9th) through MERITZ Securities' MTS "MERITZ SMART." The minimum subscription amount is over 100,000 won, and subscriptions can be made in units of 10,000 won. The issuance date is on the 13th, when the closing price of the underlying asset will be determined as the initial benchmark price.
To celebrate this ELS launch, MERITZ Securities is also conducting an event where subscribers of over 10 million won will receive a gifticon worth 10,000 won for Starbucks.