Structured Products

Flexible Solutions for Your Investment Needs.

Welcome.

Good Reasons
For structured products.

Clear Benefits
Flexible solutions for your investment needs.

Implementation in the Advisory Process

Expert advice on capital investment.

Risks and Special Features

What you should know about investing in
structured products.

From Our Basic Range: ProNote with Participation

Capital-protected products with participation.

From Our Basic Range: Floored Floater

Capital-protected products with coupon.

From Our Basic Range: Barrier Reverse Convertible

Yield enhancement products.

From Our Basic Range: Bonus Certificate

Participation products.

Glossary
The key terms in overview.

Good Reasons

Good Reasons
For structured products.
Success depends on the right mix, and thats especially true of capital invest
ment. Because structured products combine the advantages of different financial
instruments, they can be tailored to meet your individual requirements exactly.

Structured products are securities whose flexible structure brings you numerous advantages. This brochure will give you an insight
into the world of Credit Suisse structured products.

Achieving Your Market Ex

pectations: Whether you think

the performance of the market will be
positive, negative or stagnant, there
are structured products to suit your
expectations and they will bring in
a profit if youre right.

Tailoring Opportunities and

Risks to Your Requirements:
With structured products, the earnings potential of the investment and
the risk attaching to it can be adapted to fit in very closely with your
ideas. The higher the prospective
return, the greater the risk of loss
and you determine the right balance
between them.

Many Advantages,
Little
Capital Investment: With
structured products you can bene
fit from numerous advantages for
which other investment instruments
typically require a large capital
investment, such as portfolio diversification and access to certain markets.

Calculability of Success: The

payout profile of a structured
product for every market development
is defined at the time of issue. The
return thus depends entirely on market movements, not on the skill of a
portfolio manager.

Rapid Implementation of
Investment Ideas: With
structured products, market opportunities can be exploited faster than
with other instruments.

Make your capital investment more efficient: By bundling different financial

instruments together in a single security, structured products extend your
investment possibilities.

The features of a structured product de

pend on the selection of components
used. These are put together by the
issuing bank on the basis of your individual requirements. Because of the large
number of alternative components, a
structured product has an enormous
range of possible variations.

4. You determine the term of the investment.

5. Depending on the market environment
and the investment volume, we can
either offer you a product from our
existing range or create an individual
product that meets your requirements
to the best possible extent.

Identifying the right product for you from

this vast spectrum is a matter of just a
few steps:
1. You determine your risk tolerance and
the return you expect the investment
to generate.
2. You select the underlying (such as
shares, commodities or interest rates)
and the currency that you wish to
invest in.
3. You define how you expect the selected underlying to perform in future.

Flexibility
A structured product is an interesting alternative to a direct investment, especially with regard to payout procedures and
the risk profile. Structured products also
give you access to investment instruments in which a direct investment would
involve heavy costs and a high capital
investment.

Benefits of Structured Products

Flexible structure
Adaptation to your personal risk profile
Different underlyings are bundled
together in a single instrument
Access to a broader range of investment
instruments

Maturity and Disposal

Structured products are securities with
different maturities. As a rule, products
like these are held to maturity when the
repayment amount is determined by the
payout profile and the performance of the
underlying. Alternatively, the product can
be sold before the end of its term. In that
case it is sold on in the so-called secondary market at its current market price.

Structured Products Are Usually Categorized by Their Payout Profile:

Capital Protection Products

With these products a minimum amount is repaid at maturity, regardless of the performance of the
underlying. In addition to that minimum amount, an additional payout component may be distri
buted. This depends on the performance of the underlying.

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&DSLWDOSURWHFWLRQ
Yield Enhancement Products
Products in this category offer an attractive return via the coupon payment, given stable or moder<LHOGHQKDQFHPHQW ately rising prices. But the minimum repayment, if there is one at all, is conditional. If the price of
the underlying moves the wrong way, some or all of the capital invested may be lost. And the return
<LHOGHQKDQFHPHQW is subject to an upper limit by virtue of the coupon payment.
3DUWLFLSDWLRQ
Participation Products
Participation products give you unlimited participation in favorable movements in the price of the
underlying. In contrast to a direct investment in the underlying, the payout profile may include
additional components such as conditional capital protection, increased participation, or a return if
3DUWLFLSDWLRQ
the price of the underlying falls or rises. If products in this category offer a minimum repayment
amount at all, it is conditional. Should the price of the underlying move the wrong way, some or all
of the capital invested may be lost.

Leveraged Products
/HYHUDJH

The repayment value of a leveraged product disproportionately reflects changes in the price of the
underlying. If the price rises or falls by 2%, for example, the leveraged product may rise or fall by
10%. Leveraged products therefore make it possible to generate large returns with little capital
exposure, but they also carry substantial risks.

Benefits

Clear Benefits
Flexible solutions for your investment needs.

Implementation in the Advisory Process

Expert advice on capital investment.

Advisory Process

Structured products require a great deal of experience, and we help you to

select your investment solution.

Our comprehensive advice will help you

to pick the optimum product for your investment requirements:
Our unique advisory process identifies
your investment requirements and
helps you to select a suitable product.
It also highlights the effect of the proposed investment on the risk and the
expected return of your investment
portfolio as a whole.
As well as the advantages and opportunities, we also explain the risks that
are associated with an investment in
structured products.
We operate an open product architecture: In addition to our own products,
we also market selected products from
external issuers. This gives you access
to a broad range of selected products
with different payout profiles and underlyings.
During the term of a product we provide comprehensive service and advice, for example on its tradability in
the secondary market and the active
management of your investment.
Our experts in various fields work
closely together in order to make new,
innovative structured products avail
able to you.
And we work with you to devise your
optimum investment solution.

The Credit Suisse advisory process is

based on a clear, systematic approach
comprising five steps and a specific
structured product is not selected until
step 5, Implementation.

Risks and Special Features

What you should know about investing in structured products.

Issuer Risk: Issuer risk denotes the negative effects of a decline in the issuers
creditworthiness on the repayment value
of the product and its price in the secondary market. In the event of the bankruptcy of the issuer, repayment may not be
made at the end of the term which
would mean the total loss of the capital
invested. If the issuers creditworthiness
deteriorates during the term of the product, the price of the product in the secondary market may fall and in the event
of a sale before the end of the term that
could also lead to a loss. Even products
with capital protection are exposed to issuer risk. The issuers creditworthiness is
thus extremely important. The creditworthiness of any guarantor may have the
same effects as that of the issuer, so it is
just as important.
Market Risk: Market risk means the risk
of a loss due to adverse changes in the
underlying. These changes may have a
variety of causes, such as changes in
relevant market variables (interest rates,
risk premiums, equity-index levels, exchange rates, commodity prices), regulatory intervention, lack of market transparency, and in particular imbalances between the supply of the underlying and
the demand for it. An adverse change in
the price of the underlying may also be
caused by transactions conducted by the
issuer in the course of its business
activity.

Currency Risk: Currency risk denotes

the negative effects of fluctuations in exchange rates on the repayment value of
the product and its price in the secondary
market. Two exchange rates may be rele
vant here. The product may be based on
an underlying in a currency other than the
issue currency, and the issue currency
may be different from the investment currency underlying the investors portfolio
(which is often, though not always, the
currency of the country where the investor is domiciled).

Besides these most common risks, structured products also have a number of
special features you should be familiar
with.

Liquidity Risk: Liquidity risk denotes the

possibility that you may not be able to
dispose of a structured product at a reasonable price at any time. The payout
profile of a structured product defined in
advance is always valid at the end of the
term. But before the end of the term it
may not be possible to sell the product at
an acceptable price, for example because
no binding prices are quoted for it.

Rights from Underlying Securities: If

you invest in a structured product, the
ownership of the product does not give
you any of the rights associated with the
ownership of the underlying itself such
as voting rights, subscription rights, dividends, or interest.

Secondary Market Price: Changes in

the price of the underlying are not necessarily reflected proportionally and immediately in the price of the structured product in the secondary market. The exact
nature of the relationship depends on the
product type, the residual term, and possibly other factors as well.

When selecting a product you should

take all risks into account, and ideally assess them within the context of your
overall portfolio rather than just considering the product in isolation. The product
you select should both sensibly complement your portfolio and fit in with your
investment profile.
These are the most important risks and
special features of structured products.
Depending on the type of structured
product, other risks may also apply. More
information on this subject can be found
in the brochure entitled Special Risks in
Securities Trading and in the specific
documentation for each individual prod
uct. These documents are available from
us free of charge.

11

Risks

Before deciding on a structured product, you should familiarize yourself with the
relevant risks and special features. On this page we explain what you should
know about structured products before pre-investment.

From Our Basic Range: ProNote with Participation

Capital-protected products with participation.
Benefit from positive developments in the market and protect your capital
from losses at the end of the term. A ProNote with participation enables you to
generate a higher return than comparable bond investments, while limiting the
risk of loss.
What Is a ProNote with
participation?
This form of investment enables you to
benefit from the positive performance of
an underlying from rising share prices,
for example. And at the end of the term
the invested capital is fully or partly protected from losses, depending on the
product configuration.
Who Are These Products
Suitable For?
A ProNote with participation is suitable
for investors who expect the price of the
underlying to rise, but who would also like
to exclude or limit the possibility of a loss
at the end of the term. If their expectation
is fulfilled, the return may be higher than
with bond investments.

Comparison with Alternative

Investments
Instead of a structured product, you could
invest your capital in a bond from the issuing bank. The issuer risk would be the
same in both cases, and you would enjoy
capital protection as long as the issuing
bank did not become insolvent. But the
potential return from the bond would be
lower: You would be entitled to coupon
payments, but not to any participation
rights.
A ProNote with participation with an
equity index as the underlying has a lower risk than a comparable direct investment in equity funds or ETFs, because
the capital protection limits the potential
loss. The associated costs, conversely,
can reduce the extent to which you benefit from a positive equity performance.

Comparison with Alternative Forms of Investment

ProNote with participation

Bond

Share

Capital protection

Yes, by the issuer

Yes, by the
issuer

No

Participation in
share performance

Yes, generally limited

because of the costs of
capital protection

No

Yes

Coupon

Not usually, but possible

in rare cases

Yes

No, but with an

entitlement to possible dividends

12

What You Should Know about CapitalProtected Products with Participation:

At the end of the term you receive a minimum repayment, the amount of which is
fixed at the outset. This minimum repayment is not affected by the performance
of the underlying.
In addition, upon maturity you participate
in the performance of the underlying
if it is positive at the participation rate
defined at initial fixing.
If the performance of the underlying is
negative, participation does not apply
and only the protected amount is repaid.
In this event, as a rule, a traditional investment in a fixed-interest bond would
have performed better.
The information on the risks and special
features of all structured products also
applies to this one (see page 11).

4-year 100%-protected ProNote with participation in EUR on the

EURO STOXX 50 Index
Underlying

EURO STOXX 50 Index

Initial value

100% of the index level at the initial fixing

Participation

80% of the positive performance of the index, calculated

from the initial value

Minimum redemption

100% per denomination (at maturity by the issuer)

Denomination

EUR 1,000

Minimum Repayment
The repayment amount at the end of the term depends on the closing level of the EURO STOXX
50 Index, but will always amount to at least 100% of the invested capital.

Application Example
Mr. Miller has accumulated capital for a substantial acquisition scheduled to take place in
four years time. He wishes to invest this capital
for the period until the acquisition, but he
is determined at all costs to avoid a loss. Mr.
Miller is convinced that the performance of
European equities over the next few years will
be positive.
The product in this example gives him 100%
capital protection, plus 80% participation in the
positive performance of the EURO STOXX 50
Index.

Unlimited Profit Potential

If at the end of the term the index closes 30% above the initial value, for example, then you will
receive a minimum repayment of 100%, and a return of 24% (80% participation in a 30% rise).
On an investment of EUR 1,000 your total repayment is 124%, or EUR 1,240 (for further
examples, see the table below).
Performance of the index

Return

Repayment

0% or negative
index performance

0%

100%

+10%

+8%

108%

+20%

+16%

116%

+30%

+24%

124%

13

Capital Protection
with Participation

Example

From Our Basic Range: Floored Floater

Capital-protected products with coupon.
This capital investment benefits from positive future interest-rate developments:
Its periodic coupon payments are linked to a reference interest rate.

What Is a Floored Floater?

A Floored Floater offers periodic coupon
payments linked to the current interest
rate, so if rates rise, you benefit. The
minimum rate (floor) protects you from
falling rates.
At the end of the term your invested capital is repaid.
Who Are These Products
Suitable For?
A Floored Floater is suitable for investors
who expect interest rates to rise, but
want a minimum coupon to apply if they
fall. Coupon payments vary depending on
the product conditions. If your assessment of the market is correct, the return
is higher than that of a comparable bond.

Comparison with Alternative

Investments
A bond with a fixed coupon gives you a
regular fixed coupon payment. You would
thus miss out on a higher payment if interest rates were to rise, but at the same
time you would prevent your payment
from falling if interest rates went down.
A bond with a variable coupon and no
minimum or maximum rate will give you a
higher premium on the reference rate
than the Floored Floater, but the Floored
Floater protects you from a falling reference rate and you generally receive a
higher initial rate, since the floor is usually above the initial rate of a comparable
variable bond.

Comparison with Alternative Forms of Investment

Floored Floater

Bond with
fixed coupon

Bond with
variable coupon

Capital protection

Yes, by the issuer

Yes, by the
issuer

Yes, by the issuer

Participation in
share performance

No

No

No

Coupon

Yes, variable with the

current interest rate and
at least equal to the floor

Yes, no adjustment if interest

rates rise

Yes, variable with

the current interest
rate

14

What You Should Know about CapitalProtected Products with Coupon:

The minimum repayment you receive at
the end of the term is defined at initial fixing and is unaffected by the performance
of the underlying.
In addition, you receive coupon payments
during the term, the amount of which depends on movements in the underlying
interest rate. If movements are favorable,
your returns will be higher than those of
comparable interest-rate products.
If interest rates do not move as you expect, the coupon will generally be lower
than that of comparable interest-rate
products.
The information on the risks and special
features of all structured products also
applies to this one (see page 11).

3-year Floored Floater on 3-month USD LIBOR

Coupon

3-month USD LIBOR,

minimum coupon (floor): 1.75%

Coupon payment

Quarterly

Minimum redemption

100% per denomination (at maturity by the issuer)

Denomination

USD 1,000

Application Example
Ms. Mann is convinced that US interest rates
will rise sharply over the next few years. She
wishes to benefit from this increase. But it
is important to her for a minimum interest rate
to apply and for her capital to be fully protected by the issuing bank.
If Ms. Mann invests in this product, she enjoys
a minimum coupon of 1.75% p.a. In addition,
she participates fully in any increase in the
reference rate above 1.75% p.a.

Repayment
The repayment amount at the end of the term is 100%.
Unlimited Participation and Minimum Rate
The Floored Floater pays out a quarterly coupon equal to the 3-month USD LIBOR or 1.75%
p.a., whichever is the greater.
USD LIBOR

Floor

Coupon paid out

1.00% p.a.

1.75% p.a.

1.75% p.a.

2.00% p.a.

1.75% p.a.

2.00% p.a.

3.00% p.a.

1.75% p.a.

3.00% p.a.

4.00% p.a.

1.75% p.a.

4.00% p.a.

15

Capital Protection
with Coupon

Example

From Our Basic Range: Barrier Reverse Convertible

Yield enhancement products.
Generate attractive yields even if the underlying stagnates.

What Is a Barrier Reverse

Convertible?
During the term of this product you receive a coupon fixed in advance, regardless of the performance of the underlying.
The capital repayment on maturity, conversely, is dependent on the performance
of the underlying: If its price at the end of
the term is above its initial level, you receive 100% of your capital back. If it is
below, the so-called barrier becomes rele
vant: This is set at initial fixing at (say)
75% of the initial level. If the underlying
never fell below the barrier during the
term, you receive 100% of your capital
back even if it is below its initial level at
the end of the term. If the underlying did
fall below the barrier, however, you receive a cash settlement that depends on
the value of the underlying. In this case
the risk of loss is equal to that of a direct
investment in the underlying, less the
coupon payments received. Instead of a
cash settlement you may receive delivery
of the underlying; in which case shares
would be booked to your securities
account.
Instead of a single underlying, a Barrier
Reverse Convertible may contain several.

In this case the worst of principle applies, i.e. the repayment amount is determined by the underlying that has performed worst. These products carry a
higher risk exposure, and therefore a
higher coupon.
Who Are These Products
Suitable For?
Barrier Reverse Convertibles are of interest to investors who do not expect the
price of the underlying to move sharply in
either direction, but who still wish to gene
rate earnings. Given this performance of
the underlying, the fixed coupon makes
this product an interesting alternative to
a direct investment.
Comparison with Alternative
Investments
Instead of a Barrier Reverse Convertible,
you could also invest directly in the underlying a share, for example. This
would make the potential return and the
risk significantly higher: You would participate fully in any positive performance.
But you would not benefit from the conditional capital protection (barrier) or the
coupon.

Comparison with Alternative Forms of Investment

Barrier Reverse
Convertible

Share

Bond

Capital protection

Conditional (barrier), by
the issuer

No

Yes, by the issuer

Participation in
positive shareprice performance

No

Yes

No

Coupon

Yes, fixed

No, but with

an entitlement
to possible
dividends

Yes, fixed or
variable

16

What You Should Know about Barrier

Reverse Convertibles:
The predefined coupon is always paid
out. If the price of the underlying trends
sideways, a Barrier Reverse Convertible
therefore generates a better return than a
direct investment in it.
The product offers conditional capital
protection by virtue of the barrier: Your
capital is 100% protected as long as the
price never falls below the barrier. If it
does, the risk of loss is equal to that of a
direct investment in the underlying, less
the coupon payments received.
The barrier means that the risk is less
than that of a direct investment. If the
price of the underlying rises, though, you
derive no benefit.
The inclusion of more than one underlying does not constitute diversification;
on the contrary, it is a bundling of risk.
But it does mean that you receive a
higher coupon.
The information on the risks and special
features of all structured products also
applies to this one (see page 11).

1-year Barrier Reverse Convertible in CHF on Swiss Shares

Underlyings

Nestl S.A., Novartis AG, Roche Holding AG

Coupon

10% p.a.

Start values

Share prices at the initial fixing

Barriers

75% of the initial value of each underlying

Repayment

100% if all the underlyings are quoted above their initial level
at the end of the term. Also 100% if no barrier was breached.
If a barrier was breached and at least one underlying closes
below its initial value: cash settlement based on the underlying
with the most negative performance.

Denomination

CHF 1,000

Fixed Coupon
During the term the Barrier Reverse Convertible always pays a fixed semi-annual coupon of
10% p. a.

Application Example
Ms. Master often invests in Swiss equities. In
the year to come, however, she expects prices
to be stable and does not rule out slight price
falls. But she would still like to generate a good
return. She is prepared to take losses if prices
fall sharply, but she wants to be protected at a
certain level.
If Ms. Master invests in this product, she
receives a coupon of 10% p.a. at all events.
If none of the Swiss shares selected as underlyings falls by 25% or more, her capital is
100% protected even if the shares close
below their initial values one year later. If any
of the shares do fall by 25% or more, Ms.
Master suffers a loss equivalent to that of the
worst-performing share at the end of the term.

Repayment
If none of the three underlyings falls below the barrier during the term, 100% of the nominal
amount is repaid. But if at least one of the underlyings falls below the barrier during the term
and at least one underlying is below its initial value at the end of the term, the repayment
amount is reduced by 1% for each percentage point by which the worst-performing underlying
closes below its initial value at the end of the term.
Level of the worstperforming underlying at
the end of the term
(in % of the initial value)

Repayment if
at least one barrier
was breached

Repayment if
no barrier
was breached

55%

55%

n/a

70%

70%

n/a

85%

85%

100%

100%

100%

100%

115%

100%

100%

17

Yield Enhancement

Example

From Our Basic Range: Bonus Certificate

Participation products.
With a Bonus Certificate you fully participate in the performance of the underlying. A built-in barrier gives you a certain degree of protection from negative
developments.

What Is a Bonus Certificate?

Bonus Certificates are alternatives to direct investments, for example in shares
or commodities. They offer full participation in the price movements of an underlying, while a barrier provides conditional
capital protection: If it is never breached,
100% of the denomination is paid out on
maturity, plus a bonus. If the price of the
underlying has risen above the so-called
bonus level, the product participates fully
in its positive performance. If the barrier
has been breached, conditional capital
protection ceases to apply and the product is exposed to any fall in the price of
the underlying on m
aturity.

Who Are These Products

Suitable For?
Bonus Certificates are suitable for investors who wish to benefit from rising markets while being protected from temporary price drops by a safety cushion.
Comparison with Alternative
Investments
Instead of a Bonus Certificate you can
invest directly in the underlying (such as
an equity index) by means of a comparable equity fund or ETF. The potential
earnings would be comparable, but the
risk would be somewhat higher because
there would be no capital protection.

Comparison with Alternative Forms of Investment

Bonus Certificate

Share

Bond

Capital protection

Conditional (barrier), by the

issuer. The minimum
repayment may be above
100% of the invested
capital (bonus).

No capital
protection

Yes, by the issuer

Participation in
share performance

Yes

Yes

No

Coupon

No

No, but with

an entitlement
to possible
dividends

Yes

18

What You Should Know about Bonus

Certificates:
Upon maturity you participate fully in any
positive movement in the price of the
underlying.
If the underlying trends sideways or
slightly downwards, you can do better
with a bonus certificate than with a direct
investment in the underlying, since the
minimum repayment is above the issue
price as long as
the barrier has not been
breached (see page 17).
If the barrier has been breached, the risk
of loss is the same as that of a direct investment in the underlying.
The information on the risks and special
features of all structured products also
applies to this one (see page 11).

3-year Bonus Certificate in CHF on the Swiss Market Index (SMI)

Underlying

Swiss Market Index (SMI)

Participation

100% of the positive performance of the underlying

Initial value

100% of the index level at the initial fixing

Barrier

60% of the initial value of the underlying

Repayment

105% if the barrier has never been breached. Otherwise,

if the underlying closes below its initial value, cash settlement based on the performance of the underlying.

Denomination

CHF 1,000

Repayment
With the Bonus Certificate you enjoy 100% participation in the positive performance of the
underlying. Furthermore you receive at least 105%, i.e. CHF 1,050 per certificate, if the underlying never breached its barrier (60% of its initial value) during the term.
If the underlying did breach its barrier at least once during the term, you participate 100% in the
performance of the underlying whether it is positive or negative.
Underlying at
closing fixing
(in % of its initial value)

Repayment if
the barrier
has been breached

Repayment if
the barrier
has not been breached

60%

CHF 1,600

n/a

80%

CHF 1,800

CHF 1,050

100%

CHF 1,000

CHF 1,050

120%

CHF 1,200

CHF 1,200

140%

CHF 1,400

CHF 1,400

Application Example
Mr. Smith often invests in equities. He
expects the Swiss equity market to perform
well over the next few years, and wants to
take full advantage of it. However, if by
chance the equity market is not perform to his
expectations, he doesnt want to miss
out on a return completely. If the performance
of the Swiss equity market is only marginally
negative, Mr. Smith wants to be secure in the
knowledge that his capital is protected.
However, he is willing to accept full exposure
to losses in the Swiss equity market if prices
drop significantly.
If Mr. Smith were to decide in favor of this
product, he would enjoy 100% participation in
any positive performance of the Swiss Market
Index (SMI). If the index were to fall by 40%
or more during the term, Mr. Smith would be
exposed to a loss equal to that of the index at
the end of the term. But otherwise he would
receive a payout of at least 105%.

19

Participation

Example

Glossary
The key terms in overview.

Barrier
Threshold value for the price of the underlying, which if reached affects the products payout profile. The barrier is normally
below the initial value. If it is breached,
capital protection no longer applies. The
barrier cannot be reinstated, even if the
price of the underlying recovers.
Creditworthiness
Financial strength and solvency. The
financial standing of the issuer of a debt
security, which is what structured products are, is extremely important (details
on page 11).
Coupon
The regular income distributed by an investment.
Final Fixing
The determination of the price of the underlying used to calculate the repayment
value. This is usually paid out within a few
days of the closing fixing.
Index
A composite reflecting changes in certain
values over time. An equity index reflects
the performance of a selected basket of
shares on a particular stock exchange.

Initial Fixing
The determination of the initial value of
the underlying and the final determination
of all product parameters (e.g. the term,
participation, denomination, issue price).
Initial Value
The price of the underlying of the product
at the initial fixing. The performance of
the underlying is calculated from this
level.
Issue
Placement of products generally open to
(public) subscription.
Issue Price
The price at which newly issued products
are offered for purchase by investors.
Any sales commission and charges are
not included.
Issuer
The financial institute launching a product.
Nominal Amount (Par Value)
The face value of a security, the amount
receivable from the issuer. It may be
significantly different from the market

price, i.e. what third parties are prepared

to pay for it.

Performance
The overall change in value of a product
or portfolio.
Repayment Value
The amount paid out to the investor by
the issuer when the product is redeemed
at the end of the term. The repayment
value depends on the performance of the
underlying, as defined in the productspecific payout profile.
Return
Earnings, often expressed as a relative
return as a percentage of the invested
capital per year (per annum, p.a.).
Secondary Market
The financial market where previously issued products are bought and sold. This
contrasts with the p rimary market, which
handles the issue of new securities and
the redemption of securities at the end of
their term.
Underlying
The reference instrument on which the
product is based. The products repayment value is derived from the performance of this instrument in accordance
with the payout profile. Underlyings may
be shares, indices, interest rates, currencies, or commodities.

21

Glossary

In the following, the term product always

means a structured product.

We would be
delighted to
arrange a
consultation
with you.

The information and opinions expressed in this document are those of Credit Suisse AG as of the date of writing and are subject to
change without notice. Credit Suisse AG recommends that all investors have a personal conversation with their relationship manager
before making an investment decision. Please ask your relationship manager about supporting information regarding specific investment
products such as the full terms or the simplified prospectus. If available, Credit Suisse AG will provide such supporting documents upon
request.
This document constitutes marketing material and is not the result of a financial analysis or market research, and is therefore not subject
to the Directives on the Independence of Financial Research (Swiss Bankers Association). The content of this document does not
therefore fulfill the legal requirements for the independence of financial analyses. This document does not constitute an offer or
invitation to enter into any type of financial transaction. The prospectus requirements of Art. 652a/Art. 1156 of the Swiss Code of
Obligations are not applicable. Credit Suisse AG does not make any representation as to the accuracy or completeness of this document
and assumes no liability for losses and tax implications arising from its use.
In certain circumstances, some investments may not be immediately realizable, which means that the sale or liquidation of these
investments may prove difficult or at times impossible. International investments (in particular in emerging markets), investments in
smaller companies, investments in funds or investment strategies that focus on a sector, country or region, as well as other specific
investments where the investment guidelines permit the use of debt or derivative instruments, carry specific risks.

CREDIT SUISSE AG
P.O. Box 100
CH-8070 Zurich
www.credit-suisse.com/structuredinvestments

SOLS 6 2513584 12.2010

Structured Derivatives
This document is not a simplified prospectus as stated in Art. 5 of the Swiss Federal Act on Collective Investment Schemes. These
investment products do not constitute participations in collective investment schemes. Therefore, they are not supervised by the Swiss
Financial Market Supervisory Authority FINMA and the investor does not benefit from the specific investor protection provided under the
Federal Act on Collective Investment Schemes. The investment instruments retention of value is dependent not only on the development
of the value of the underlying asset, but also on the creditworthiness of the issuer (credit risk), which may change over the term of the
product.
These investment products are complex structured derivatives and involve a high degree of risk. They are intended only for investors who
understand and are capable of assuming all risks involved. Before entering into any transaction, investors should determine if this
product suits their particular circumstances and should independently assess (with their professional advisors) the specific risks
(maximum loss, currency risks, etc.) and the legal, regulatory, credit, tax, and accounting consequences. Credit Suisse AG does not
issue recommendations regarding the suitability of these investment products for particular investors or guarantees regarding the future
performance of these investment products. Historical data on the performance of the investment products or the underlying assets is no
indication of future performance. No representation or warranty is made that any indicative performance or return indicated will be
achieved in the future.
Neither this document nor copies thereof may be sent to or taken into the United States or distributed in the United States or to a US
person. In certain countries, the distribution of funds is limited by local laws or regulations. This document is provided for information
purposes only and for the exclusive use of the recipient. This document may not be reproduced in part or in full without the written
consent of Credit Suisse AG.