Barrier Discount Certificate

This type falls in the yield enhancement category of structured products.

It provides an opportunity to buy an underlying asset at a price lower than the market price (with a discount), but the income is limited by the discount. The investor expects that the asset will be traded higher than the threshold (barrier). At the time of expiration, the investor will gain income. If the barrier is reached during the trading period, the Barrier Discount Certificate is transformed into the Discount Certificate.