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Yield Enhancement

Slowing growth: Optimizing yields

Wednesday, 1 September 2021 Reading time : 2 minutes

Following the rapid recovery of the global economy in the first half of the year, growth is losing momentum. Although analysts continue to expect positive growth rates, some are revising their forecasts downward somewhat. Among other things, this development is likely to be due to the spread of the delta variant and supply bottlenecks in various industries.

National benchmark indices such as the SMI, the EURO STOXX or the S&P500 generally develop relatively linearly along with the respective economies and are therefore suitable for a well-diversified investment.

Callable Barrier Reverse Convertible on SMI Index, EURO STOXX 50 Index, S&P 500 Index (CHF)

  • 5% coupon p.a.*
  • 65% barrier*
  • 12 months maturity
  • Subscription period ends on September 2, 2021, 4:00 p.m.
  • Termsheet

Swiss performance: SMI selection with 8% coupon
Good returns can also be achieved with individual stocks from the SMI. The defensive qualities of the Swisscom share are well suited for uncertain market phases thanks to stable dividends, for example. Givaudan benefits from its global market leadership in the flavor and fragrance industry, while Alcon presented surprisingly strong financial figures for the first half of 2021 and has further upside potential. Swiss Life shows consistently strong corporate results, thanks in part to its market leadership in the Swiss pensions business.

All four shares are rated "overweigh" by ZKB Equity Research.

Callable Barrier Reverse Convertible on Givaudan, Alcon, Swiss Life and Swisscom

  • 8% coupon p.a.*
  • 65% barrier*
  • 12 months maturity
  • Subscription period ends on September 7, 2021, 4:00 p.m.
  • Termsheet

*indicative


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