HSBC Launches Deutsche Post Equity Bond with 6.90% Annual Interest
HSBC has introduced an equity bond tied to the Deutsche Post share, offering investors an annual interest rate of 6.90% over two years. However, investors should be aware of certain risks and potential outcomes.
The bond, with WKN HS80UP, provides a secure interest rate, making it an attractive alternative to overnight money. However, it requires a sideways or slightly downward trend in the DHL share to be profitable. If the share price is below the base price of €36.50 on the valuation day (17.07.2026), investors may not receive their full invested capital and could incur a book loss.
To mitigate this risk, the bond offers an interest rate that can buffer potential losses if the share price is above the loss threshold. Unlike the Deutsche Post bond with WKN A2AASL, which offers a fixed mortgage rate of 1.25% and has a call option from January 1, 2026, this equity bond provides a higher, variable interest rate but with increased volatility and risk.
Investors in the HSBC equity bond tied to the Deutsche Post share can earn a high annual interest rate of 6.90% over two years. However, they must be prepared for higher volatility and risk, and understand the potential outcomes, including the possibility of a book loss if the share price performs poorly.
