What is a lock-in?

In addition to the nominal capital return, Nordea Bank S.A. is one of the few European banks offering structured products with an attractive lock-in feature to secure gains in the market at pre-defined levels. In the past, this feature has protected investors in volatile markets by securing gains achieved prior to market downturns.

Example of a lock-in for a structured product:

• The term of two years is divided into 24 monthly periods
• Increases or decreases in the relevant index is calculated monthly
• The accumulated sum of all monthly increases and decreases during the lifetime of the product is added to 100
• Monthly increases are capped. For example, a pre-defined cap of 3.50% would mean that, for a monthly increase exceeding that level (e.g. 5.50%), a figure of 3.50% would be used as the basis for calculations.
• If the accumulated sum (considering a monthly cap) during the lifetime of the bond reaches 6%, the minimum redemption value becomes 106
• If the sum reaches 15%, the minimum redemption value becomes 115
• This is followed by further lock-in levels up to a pre-defined maximum lock-in level