Medium

Risk
Yield
Enhancement
Bearish Contingent Participation Autocallable Optimization Securities
Investment Terms
Issuer UBS
Notional- $2,137,000
Unit Size-213,700 notes
CUSIP-90273L179
Underlying-Corn
Pricing date- Aug 11, 2014
Maturity data- Aug 24, 2015
Max Return-20 %
Minimum Return- 0%
Issuer Details
Issuer UBS
S&P Credit Rating:
Market capitalization
66.46 Bn
CDS 5y spread 150 bps

Investment underlying opportunity: Corn is a commodity, in 2013, the U.S. produced 353.7
million metric tons off. The next best producer of corn that year was China with 217.7 million
metric tons. The world in total produced 1.016 billion metric tons of corn. Its produced in such
quantity because of all the uses it has in the markets. Corn is a staple as a food source for many
parts of the world. It is used in chemical, bio-fuel, alternative medicine, and many other things.
UBS issued a Bearish Contingent Participation Auto callable Optimization Securities on corn. The
bearish feature with an auto callable is comparable to a put style of option, where the security is
called when the underlying value is called if it drops below the initial value level.
Further analysis





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Risk Return Dashboard
Expected
Return
6.165 %
Volatility 45.9%
Risk Score 6
Capital
Guaranteed
No
Maximum
Loss
100% of
investment
Performance Measure
Expected
Return
Medium
Market Risk High
Issuer Risk Low
Complexity Low
S&P 500 statistics
Beta N.A.
P/E N.A.
RoE N.A.
Current Ratio N.A.
Leverage Ratio N.A.
Altman's Z-Score N.A.
Dividend Yield N.A.
Total Debt/Equity N.A.
Corn
The Expected Return is 6.165%. The
volatility is at a low 45.9%. The Risk
Score is at a 6. This note does not
have a capital guarantee.
Investment Metrics
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Note Return
Note Return
Note Performance
(Historical)
Note Performance
(Future Stress test )
Return 6.165% per annum 6.165% per annum
% of called 61.456% 61.456%
Probability of
Gain
81.41% 81.41%
Risk Score 6 6
Volatility 45.9% 45.9%
Probability of
Loss
18.58 % 18.58%
Expected
Maturity
1 Years 1 Years
The note gives a return of 6.165% per annum historically with a probability of gain of 81.41%.
As the note gets closer to maturity, the returns and the probability of gain increases.
Investment Performance
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7/24/1998 4/19/2001 1/14/2004 10/10/2006 7/6/2009 4/1/2012 12/27/2014 9/22/2017
Historical Analysis
Asset performance Note Return Asset Level
Recommendation: Metrics and historical analysis concludes this investment is a risky one for a
conservative investor. In current market environment for an adventurous investor this investment will
definitely help to obtain 20% maximum return.
Pros Cons
Note provides a bearish feature that
provides a return of as the underlying
reaches trigger levels below the initial
value on pricing date.
Note offers exciting opportune
exposure to Corn commodity and
futures market for $10 per note.
Note offers a pre offers four
observation periods for the auto
callable to enact.
Note has potential to loss.
if the security is not called and the
final price is higher than the trigger
price investors will be exposed to loss.

Score Card:

Autocallable Market-Linked Step Up
Note on S&P 500
Market Direction (SP 500):
Market Vol (SP 500):
Underlying Direction:
Underlying Vol:
Issuer Credit (CDS):
Investor Risk Appetite:
Investment Recommendation
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Disclaimer: This report is prepared by Gatick Global solutions team. This is
not an investment advise.
Contact Details:
Karthik Misra and Chandra S Khandrika for further details and questions

Bearish Bullish
Low High
Bearish Bullish
Low High
Low High
Low High