What are autocallable structured products?

Autocallable structured products are investments that are automatically converted or redeemed as soon as certain external conditions are met.

These conditions can include, for example, the achievement of a specific value of an index, security, currency, or commodity. These products were probably first introduced in 2003 and have since become increasingly popular.

The automatic redemption or conversion happens when the predetermined criteria are met, which can lead to early termination of the investment.