Börsenlexikon: Certificate

Certificates are debt securities that have derivative components so that their performance depends on the performance of other financial products (e.g. equities, bonds, foreign exchange, commodities, stock market indices). Certificates are among the structured financial products. They are issued by banks and represent an opportunity for private investors to pursue complex investment strategies and invest in various asset classes. In connection with debtor risk, it should be noted that certificates are recorded on banks' balance sheets (unlike investment funds) and are not segregated in the event of bankruptcy, but fall into the bankruptcy estate. A tragic example is the US bank Lehman Brothers, where many investors lost their money invested in structured products for which the bank was liable. Further information can be found at the SSPA (Swiss Structured Products Association) at www.svsp-verband.ch.