Medium

Risk
Yield
Enhancement
Accelerated Return Notes on S&P 500
Investment 1heme: PS8C lssued a AcceleraLed 8eLurn noLe for Lhe S& 300 lndex on !uly 24,
2014. 1hls noLe wlLh a 14 monLh maLurlLy conLalns full downslde exposure lf Lhe lndex falls below
Lhe value on Lhe prlclng daLe. Cn Lhe up slde, Lhe acceleraLed feaLure glves you a 300 reLurn lf
Lhe lndex sLays level or lncreases up Lo 10 everyLhlng beyond LhaL ls capped aL 10.

Investment 1erms
lssuer - PS8C
nouonal- $162,366,360.00
unlL Slze-16,236,636 noLes
CuSl-40434C212
underlylng-S& 300
rlclng daLe- !uly 24, 2014
MaLurlLy daLa- SepL 23,
2017
Max 8eLurn- 9.331
Mlnlmum 8eLurn- 0
Issuer Deta||s
lssuer - PS8C
S& CredlL 8aung:
MarkeL caplLallzauon
203.74 8
CuS 3y spread 130 bps

Investment under|y|ng opportun|ty: 1he S& 300 has been rlslng ever slnce 2008,wlLh a few
sLumbles here and Lhere. Slnce Lhls ume lasL year Lhe lndex wenL from $1706.87 Lo $1923.13,
whlch galned of 218.28 polnLs. 1hls galn speaks Lo Lhe general recovery ln Lhe economy. 1hls
could be because a few ouLlyers are pulllng Lhe markeL or each of Lhe lndlvldual lndusLry secLors,
LhaL paruclpaLe, ln Lhe S& 300 are dolng well and growlng. Cn Lhe oLher hand lL could [usL be Lhe
markeL senumenL lncreaslng due Lo Lhe growLh ln Lhe value of Lhe lndex, sorL of llke a self fullllng
prophesy. lL should be noLed LhaL durlng Lhe sLarL of Lhe CredlL Crlsls Lhe S& 300 fell for abouL a
year and half and lL Look a llule longer Lhan LhaL amounL of ume Lo recover. 1he lndex ls explorlng
new LerrlLory and lL ls up Lo each lnvesLor Lo declpher whaL Lhey see Lo Lhe besL of Lhelr ablllLy.

lurLher analysls





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k|sk keturn Dashboard
Lxpected
keturn
9.S31
volaullLy 19.6
8lsk Score 4
CaplLal
CuaranLeed
no
Maxlmum
Loss
100 of
lnvesLmenL
erformance Measure
LxpecLed
8eLurn
Medlum
MarkeL 8lsk Medlum
lssuer 8lsk Low
ComplexlLy Low
S& 300 sLausucs
8eLa n.A.
/L n.A.
8oL n.A.
CurrenL 8auo n.A.
Leverage 8auo n.A.
AlLman's Z-Score n.A.
ulvldend ?leld n.A.
1oLal uebL/LqulLy n.A.
S& 300 lndex
1he LxpecLed 8eLurn ls 9.331. 1he
volaullLy ls aL a low 19.6. 1he 8lsk
Score ls aL a 3. 1hls noLe does noL
have a caplLal guaranLee and Lhere
ls a 1-Lo-1 downslde exposure.
lnvesLmenL MeLrlcs
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-80
-70
-60
-30
-40
-30
-20
-10
0
10
20
-60 -40 -20 0 20 40 60 80
Note keturn
noLe 8eLurn
Note erformance
(n|stor|ca|)
Note erformance
(Iuture - Stress test )
8eLurn 9.331 per annum 9.331 per annum
robablllLy of
Caln
72.6 72.6
8lsk Score 4 4
volaullLy 19.6 19.6
robablllLy of
Loss
27.33 27.33
LxpecLed
MaLurlLy
14 MonLh 14 MonLh
An lndex ls a safe lnvesLmenL, especlally Lhose LhaL are used as a reference benchmark llke Lhe
S& 300. 1he noLe glves a reLurn of 9.331 per annum hlsLorlcally wlLh a probablllLy of galn of 72.6.
As Lhe noLe geLs closer Lo maLurlLy, Lhe reLurns and Lhe probablllLy of galn lncreases.
lnvesLmenL erformance
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-80
-60
-40
-20
0
20
40
60
80
0
300
1000
1300
2000
2300
12/20/1996 9/16/1999 6/12/2002 3/8/2003 12/3/2007 8/29/2010 3/23/2013
n|stor|ca| Ana|ys|s
AsseL Level
AsseL
performance
noLe 8eLurn
ros Cons
noLe provldes a AcceleraLed feaLure
beLween 0-10 LhaL provldes a reLurn
of 300 and everyLhlng beyond LhaL ls
1-Lo-1 exposure.
noLe oers exclung opporLune
exposure Lo S& 300 for $10 per noLe.

noLe oers ve observauon daLes Lo
esumaLe average nal value raLher
Lhan one slngle nal observauon.


noLe has poLenual Lo loss due Lo 1-
Lo-1 downslde exposure.
S& 300 has been on a long bull run.
Score Card:

Autoca||ab|e Market-L|nked Step Up
Note on S& S00
MarkeL ulrecuon (S 300):
MarkeL vol (S 300):
underlylng ulrecuon:
underlylng vol:
lssuer CredlL (CuS):
lnvesLor 8lsk AppeuLe:
lnvesLmenL 8ecommendauon
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ulsclalmer: 1hls reporL ls prepared by Cauck Clobal soluuons Leam. 1hls ls
noL an lnvesLmenL advlse.
ConLacL ueLalls:
karLhlk Mlsra and Chandra S khandrlka for furLher deLalls and quesuons

8ear|sh 8u|||sh
Low n|gh
8ear|sh 8u|||sh
Low n|gh
Low n|gh
Low n|gh
8ecommendauon: MeLrlcs and hlsLorlcal analysls concludes Lhls lnvesLmenL ls a rlsky one for a
conservauve lnvesLor. ln currenL markeL envlronmenL for an advenLurous lnvesLor Lhls
lnvesLmenL wlll denlLely help Lo obLaln3 umes leverage wlLh 10 maxlmum reLurn.