Varta bond with comdirect Bank!

The share of the Canadian battery manufacturer Varta is in the repeatedly been in the media over the past few months. After some reports, the course came under massive pressure and it is currently not clear how Varta will develop. There is now a loan on Varta via comdirect bank, which was designed by HSBC.

Varta is basically a solid battery manufacturer that produces batteries for the international market. Nevertheless, the share has come under massive pressure in recent months. Whether this was the result of an overvaluation in the previous period, or whether the share came under pressure due to other problems, is currently completely open. Varta has specialized primarily in smaller special batteries and offers products that are otherwise not available from the competition. A few months ago, the share rose fromVarta to almost 120 euros and thus reached a new peak value. Shortly thereafter, however, the price fell significantly and after the latest reports about the corona virus, the price was in the range of around 70 to 80 euros. Each trader has to decide for himself how much potential Varta has in which direction before subscribing for the share or a bond.

Bündel von Bargeld.

Varta bond from HSBC via the comdirect bank offers 14% interest per year!(©Ajale/Pixabay)

Varta is currently about 58% owned by a Swiss group. The heart of the microbattery business is currently in Ellwangen. There are currently around 2,200 employees working for Varta. The fact is that there has been some restructuring at Varta in the past, which in any case contributed to the fact that the group had specialized. Among other things, the production of car batteries went to Johnson Controls. In the area of ​​micro batteries, Varta is still well positioned worldwide. For example, the company has developed battery solutions for special purposes, which were also used in space travel with the ISS, for example.

The current bond that customers of comdirect Bank can subscribe to on Varta is a so-called HSBC Protect Reverse Convertible Pro. This means that this bond has a built-in barrier of 14% of the starting level. Basically, the term of the bond on Varta is defined as 12 months. It is not possible for the term to be extended. During these 12 months, investors are credited with an attractive and comparatively highinterest rate of 14% p.a.. The high interest rate may indicate that the risk associated with this bond is higher than with other bonds. In concrete terms, this means that you can expect strong price fluctuations with the Varta bond.

It should be noted that the security of the bond is provided by the barrier of 80% of the starting level and by the 14% interest per year that is paid in any case. Interest is paid even if the barrier is touched or even fallen below. The barrier is intended to reduce the certainty of a delivery of shares on the reference date.

When does the barrier take effect and what are the risks associated with the Varta bond?

In principle, the barrier will be set on March 9, 2020. This means that the barrier on this day is defined exactly 20% below Varta's measured share price. The valuation date, which is important for the decision whether to book capital or shares, is set for March 19, 2021. It doesn't matter whether the share touches or even falls below this barrier during the term of the bond, as long as it is listed above it on the valuation date.

The risks should be known before subscribing the bond. Traders need to know that their investment capital is not being protected. In extreme cases it is possible that a total loss of the investment can take place. Unless thebarrier on March 19, 2021 was fallen below or touched, this means that shares are credited instead of capital. The value of the bond can develop negatively over the entire term. Fluctuations in Varta's share price and changes in interest rates can result in the bond developing negatively. With this investment, the investors bear the issuer risk and also the termination risk.

What do I need to trade the Varta bond?

In order to be able to subscribe to the Varta bond, it is necessary to open a securities account with the comdirect bank. The depot is opened online within a very short time and offers the opportunity to use numerous securities and other forms of investment. You can also add a checking account, a call money account, a clearing account or loans to the depot, for example. As a direct bank, comdirect offers numerous products as well as credit cards and is therefore considered a fully-fledged bank.

In order for Varta bond trading to work, it is necessary to pay at least 1,000 euros into the deposit. This is the minimum amount that can be used for trading to subscribe for parts of the bond.

What else does the comdirect Bank depot offer?

Comdirect Bank customers benefit from the fact thatmany attractive products can be perceived. The attractive and inexpensive custody account at the bank is characterized by the fact that account management can even be carried out permanently free of charge. This is the case if you decide to supplement the entire portfolio with the current account and manage both products in parallel. The fact is that comdirect Bank is well positioned in any case and the products offer real added value at the same time.

The investment opportunities at comdirect Bank clearly exceed the options offered by many other brokers. This means that you can not only order securities at numerous domestic and foreign trading venues with comdirect Bank, but also, for example,options and ETFs and funds. The selection of funds at comdirect Bank is very large. More than 10,000 different funds are offered, which can be subscribed online easily and without any problems. There are now significantly more products in the selection of ETFs than was the case a few years ago. The ETFs enable customers of comdirect Bank to subscribe to commodities and other products, for example. In any case, it is worth taking a closer look at the portfolio of comdirect Bank if you have opened a securities account here.

What service does comdirect Bank offer its customers?

The service at comdirect Bank is to be recommended in any case and is characterized by the fact that it is significantly more intensive than at other banks is the case. Many banks only offer a basic service during regular opening hours. At the comdirect bank, you can use the service without any problems 7 days a week. In addition, the service is available on each of these7 days a week 24 hours a day. This means that with the comdirect bank you should of course assume that the service can also be reached via different channels. It is possible that one can contact the service, for example, via the live chat on the homepage. The chat service is very easy to use and offers the advantage that you can surf the Internet at the same time or, for example, work on the computer.

A hotline is also available if you want to contact the comdirect bank. The service via e-mail or fax can also be used if you have questions or if you want to transfer documents to the bank, for example. comdirect Bank thus offers more extensive services than is the case with almost all online brokers.

The article was published on March 3rd, 2020 in the cpaws-ov.org magazine under the keywords,,,, published.
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