What are the autocallable certificates
In the broad category of certificates, we define autocallable those that allow for the early repayment (ie even before the natural expiration) of the nominal value of the stock with the addition of a premium or coupon, provided that a certain condition is met agreed in advance. Usually the predetermined condition is that the underlying is higher than its initial value defined as the trigger level in certain valuation date. To put it in other words, the financial instruments that are autocallable are automatically redeemable by the issuer on the date or dates established at a predetermined value that can also be increased during the life of the certificate.
The certificates that bear autocallable clause therefore offer the opportunity to take advantage of slight increases in the stock market in the short term allowing higher returns than the market itself. If the condition of exceeding the trigger level does not occur, it does not change the value of final redemption.
The concept of valuation dates is very important and can be intermediate if the valuation dates occur during the life of the certificate or the date of final assessment which corresponds to the natural end. In the case of early termination of the certificate you speak thus of coupon interim while we talk about the natural expiration of the final dividend.