Thursday, 17 April 2025 Reading time : 2 minutes

Global equity markets have calmed down somewhat this week. By Wednesday evening, the SMI gained 3.5% and the EuroStoxx 50 was up 3.7%. Asian stock markets were also slightly higher. The exception was the New York Stock Exchange, which has been falling since the beginning of the week. 

The easing in financial markets is reflected in the volatility indices, which are currently below last week's levels. The Vix index measures the expected (implied) 30-day volatility of the S&P 500 index based on option prices. The indicator rose to over 52 points last week, its highest level since the spring of 2020, when the corona crisis hit. The Vix is currently trading at just under 33, signalling a significant easing, although volatility remains high by long-term standards. The same pattern can be observed in the Swiss equity market, where the volatility index of the SMI (V3X) has fallen from 34.5 to just under 22 points. 

The turbulence on stock markets has affected individual stocks very differently. Shares in food giant Nestlé have bucked the trend and are up 15.9% year-to-date (as of April 16, 2025, including dividends). This puts them at the top of the SMI, after being one of the losers among market heavyweights last year. Insurance stocks also performed well in the adverse market environment: Swiss Life (+11.5%), Swiss Re (+11.4%) and Helvetia (+20.5%) clearly outperformed the SMI (+2%) and the SPI (+1%) over the same period. 

Sonova is the worst performer in the SMI, with the hearing aid specialist's equities losing 21.4% since the start of the year. The industrial group ABB (-13.5%) and the large Swiss bank UBS (-14.6%) also recorded significant losses. 

The barrier reverse convertibles on the Swiss tops and flops partially cushion losses and offer a guaranteed coupon:

Barrier Reverse Convertible on Swiss Winners
8.00% p.a. BRC on Helvetia, Nestle, Swiss Life, Swiss Re
Barrier: 66%
Valor: 142 531 647

Barrier Reverse Convertible on Swiss Laggards
8.50% p.a. BRC on ABB, Sonova, UBS
Barrier: 63%
Valor: 142 531 688

 

Indicative terms

 

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