Friday, 25 March 2022 Reading time : 1 minute

After the volatility index of the Chicago Stock Exchange (VIX) jumped to over 40 points in the course of March, volatility seems to be approaching its 12-month average again, which is a good 20 points.

This is not only true for the S&P 500 Index, but also for Swiss equities - the expected volatility is decreasing again, but is still above the annual average.

If underlyings with low correlations are selected for BRC, the probability of a barrier event increases, but so does their return potential; in combination with the still slightly increased volatility, attractive return profiles result even for very defensive barriers and over-the-year maturities.

With the exception of Richemont ("market weight"), ZKB Equity Research rates all selected stocks as "overweight" and therefore assumes further upside potential.

(Callable) Barrier Reverse Convertible onNestlé, Zurich, Roche, Logitech and Richemont

• 8% coupon p.a. (BRC)
• 10% Coupon p.a. (Callable BRC)
• Defensive Barrier at 50%
• 18 months maturity
• Subscription deadline March 29, 2022
• Termsheet BRC
• Termsheet Callable BRC

indicative information

 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements.
The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document.
If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen.