NH Investment & Securities launched a new online-only equity-linked derivative securities (ELS) product, "N2 ELS," on the 1st and announced it would recruit investors for "N2 ELS No. 1," which features a knock-in barrier structure in the 10% range. This is the first product introduced as part of the renewed N2 brand.
The N2 ELS No. 1, set to launch on the 2nd, targets a pre-tax annual revenue of 12% with Tesla and Palantir as the underlying assets. The product's most notable feature is its knock-in barrier, set at 19%, which is the lowest level among ELS previously issued by NH Investment & Securities.
The knock-in barrier refers to the point of principal loss, meaning the lower the set knock-in barrier, the relatively lower the risk of loss.
The maturity of the newly launched product is three years, during which if the prices of the two underlying assets maintain a certain level above the initial reference price on semi-annual early redemption evaluation days, revenue will be paid, and early redemption will occur.
Even if early redemption does not occur, if both underlying assets maintain more than 75% of their initial reference price on the maturity redemption date or have never dropped below 19% of the initial reference price during the investment period, the principal and pre-tax maturity revenue of 36% will be paid upon maturity redemption.
However, if any of the underlying assets have dropped below 19% of the initial reference price at any time, and at maturity evaluation, any of them are below 75%, a principal loss of up to 100% may occur according to the maturity redemption conditions.
This product is an online-only offering. Subscription will be available from the 2nd to the 8th through the home trading system (HTS), mobile trading system (MTS), and the NH Investment & Securities website, with a minimum investment amount of 100,000 won. The investment grade is rated 1, indicating a very high risk, suitable for aggressive investors.
Jeon Dong-hyun, executive director of product solutions at NH Investment & Securities, noted, "This 'N2 ELS No. 1' is symbolic as our first product with a knock-in barrier in the 10% range, pursuing both revenue and stability."
Meanwhile, NH Investment & Securities will hold an event from the 2nd to the 26th to celebrate the launch of the new brand "N2." All online-only N2 ELS products will participate, with prizes including mobile gift certificates worth up to 190,000 won for customers without previous ELS experience. More details can be found on the NH Investment & Securities website or through the MTS (Namu, QV) app.