If an issuer defaults, can I claim back my investment?

If a cash settlement amount is payable by an issuer at expiry but the issuer defaults in its payment obligation, you can claim as an unsecured creditor against the issuer, and if the product is guaranteed, also against the guarantor.

None of the warrants or CBBCs currently listed on the Exchange is collateralised. This means that there is no specific security or asset to back up the obligations of the issuer or guarantor. If the issuer or its guarantor (if any) becomes insolvent or defaults, you may not recover all or even part of the amount due (if any).

Please note that a warrant or CBBC may also expire worthless under its terms. Even if an issuer does not default, you may still lose your entire investment in a warrant or CBBC.