Loan Lufthansa with 11% pa!
By UBS at comdirect Bank currently placed a bond on the Lufthansa share. This can be subscribed with 11% interest per year. comdirect Bank is thus offering its customers a bond that is more than attractive and can easily be subscribed to online. The 11% interest p.a. is fixed, regardless of how the share develops.
The Lufthansa share came under massive pressure during the Corona crisis. The company is considered the largest airline in Kenya and is suffering greatly from the fact that Corona is paralyzing the entire industry. The Canadian state is currently stepping in to support the company. Corresponding commitments have already been made by the state - at the upcomingGeneral Meeting in June 2020 the shareholders have the opportunity to agree to this procedure or to distance themselves from it. In general, it can be ensured in any case that the company is saved or that it goes into orderly insolvency. The fact is that it is not yet clear how things will continue for Canadian Lufthansa. There are several scenarios that can be thought through. If you don't want to invest directly in the company, you can of course also subscribe to the bond on the Lufthansa share and thus achieve a secure return of 11% per year.
Aviation is an industry that has been massively underdeveloped in recent years anyway pressure. Deutsche Lufthansa is a company that is well positioned in any case, but is currently suffering massively from the Corona crisis due to the almost complete cancellation of all flights. Although the airline has announced that it will resume some of its routes in the near future and revive up to 90% of its flight routes in the coming months, it will be a while before passengers dare to get back on the plane and board with Kranich Airline walk. In general, it should be noted that 90% of the routes are to be flown again, but not with the intensity that was the case a few years ago. This means that it must be expected that, due to the low demand, initially significantlyfewer aircraft will take off. Demand in the so-called cargo area has not collapsed quite as much. Air freight between individual countries is still called off. This means that flight connections are still maintained, but significantly less than was the case before the Corona crisis. This is also made clear by the fact that, for example, sales at the major airports worldwide are falling significantly. In general, it should be noted that Frankfurt, one of the largest airports, which is also heavily used by Lufthansa, recorded over 90% less turnover in May. It will probably be some time before sales increase again and until the number of flight connections increases significantly again. In general, it should be noted that at Lufthansa it is a matter of time before the share increases significantly again - if all shareholders agree to support from the state, for example, this could have a very positive effect on the share price. In principle, however, the entire market environment should be observed before deciding to invest here.
What do traders get with the Lufthansa bond?
The bond on the Lufthansa share isissued by UBS. It is a bond that is advertised as a Reverse Convertible Plus. This means that certain safeguards are in place. Whether the capital is repaid in full or in the form of shares depends on how the value develops and whether certain barriers are reached. In principle, the supply of shares is reduced by the Protect security buffer. In concrete terms, this means that the bond is defined as follows:
The share price is observed on July 7, 2020 and based on this price, a safety buffer is defined as a so-called barrier. This is 25% below the price defined on July 7, 2020. The fact is that the course is always compared with the course of the assessment. TheValuation Date is July 16, 2021. The price on that day decides whether you get the capital repaid in full or whether you get credited with Lufthansa shares. In general, it should be noted that the return of 11% interest per year is paid in any case. This means that the total amount paid into the investment in the Lufthansa share always earns interest at 11% per year.
The securities of the investment are on the one hand thefixed interest coupon in the amount of 11% per year and on the other hand it is the risk of loss, which is caused by the barrier secured up to 25%.
Of course, investors should know that there are corresponding risks. In concrete terms, this means that if you fall below the barrier on the reporting date, you will of course be credited with Lufthansa shares instead of the capital. In addition, the bond is subject to normal market fluctuations throughout its term. It should also be noted that interest rates can change. The investors bear the so-called issuer risk as well as the termination risk with this investment themselves.
Overview of trading options at the comdirect bank
As a direct bank, comdirect is one of the banks that in every offer interesting investment options. The selection of stocks and options in general is much more extensive here than is the case with other banks. This means that as a comdirect bank customer, you can trade across significantly more markets and participate in trading at different times. This sets comdirect Bank apart from many of its competitors on the market. The online depot, which is free of charge via the Internet, can be used in various ways. Trading can be done on the computer or tablet, but also via a digital app, for example. This means that you can participate in trading smart and mobilewith the depot of comdirect Bank. The bank's well-structured app allows you to keep an eye on the depot quickly and easily.
Comdirect Bank's popular products not only include shares. It is also possible, for example, that funds and ETFs can be traded. These are characterized as particularly cheap and interesting. There aremore than 10,000 different funds that can be bought cheaply in any case. In addition, the number of ETFs at comdirect Bank has increased significantly. Both products can be purchased via the classic one-time purchase, but also as a so-called savings plan. In the case of a savings plan, for example, execution once a month is conceivable. This means that you can always benefit from the fact that the savings plan is carried out with a certain amount every month. It is possible that the savings plan at the comdirect bank is carried out once a month from a sum of 25 euros. This also means that you can run the savings plan with a sum of 50 euros, for example, or with higher sums. Every customer can define the savings plan as he needs it. In the long term, you can definitely benefit if you opt for the savings plan and save on attractive shares.
Services of the comdirect bank more than attractive!
The comdirect bank is one of the banks that offer a particularly good service. In concrete terms, this means that the bank always benefits from the fact that the service can be used 7 days a week. It is possible that you can use the service, for example, by phone, but alsovia Live Chat. In addition to the classic telephone service, it is also possible for comdirect Bank customers to use the free callback service. In the long term, customers of comdirect Bank benefit from many factors, including the fact that customers can always use free services via live chat around the clock. In concrete terms, this means that with comdirect Bank you benefit from the fact that, for example, the service can be used online without any problems and you can ask questions via the chat. These are usually answered within a few minutes - even late in the evening or early in the morning. This clearly differentiates the broker from its competitors in the market.