Monday, 13 June 2022 Reading time : 2 minutes

Movement in the share price
When a report was published on June 8 that the American financial giant State Street wanted to take over Credit Suisse for CHF 9 per share, the price of the same reacted immediately, with some market participants reacting to the rumor. As a result, the stock gained over 10% on Wednesday afternoon, at times trading above CHF 7 again.

Defusing
State Street defused the market rumor the next trading day. When it communicated on Thursday that the report "lacked any basis", the share gave up its price advances again. It is currently trading at its all-time low of CHF 6.11.

The potential
Nevertheless, according to the Bloomberg analyst consensus, more than 60% of analysts continue to recommend holding the share, and ZKB Equity Research also rates the share as "market-weighted". The price-to-book ratio, which compares the market value of a company with its book value, is 0.35 for Credit Suisse, which may indicate a significant undervaluation. By comparison, this ratio is 0.93 at UBS, 1.44 at Julius Baer and as high as 1.86 at Vontobel.

For investors who expect the Credit Suisse share price to stabilize, these developments offer interesting entry opportunities and attractive yield opportunities. 
Reverse Convertible auf Credit Suisse (CHF)

• 10% Coupon p.a.
• 90% Strike
• 12 Monate Laufzeit
• Valor: 116 433 383

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Reverse Convertible auf Credit Suisse (CHF)

• 7% Coupon p.a.
• 80% Strike
• 12 Monate Laufzeit
• Valor: 116 433 382

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Barrier Reverse Convertible auf Credit Suisse (CHF)

• 9% Coupon p.a.
• 59% Barriere
• 12 Monate Laufzeit
• Valor: 116 433 379

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Callable Barrier Reverse Convertible auf Credit Suisse (CHF)

• 12% Coupon p.a.
• 59% Barriere
• 12 Monate Laufzeit
• Valor: 116 433 384

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Other bank stocks can also be interesting for yield enhancement products at the moment. The UBS share, also rated "market weighted" by ZKB Equity Research, has only moved slightly YTD (-1.4%). For investors expecting a sideways movement, the ZKB Autocallable BRC on UBS may be suitable:

Autocallable Barrier Reverse Convertible auf UBS (CHF)

• 8.5% Coupon p.a.
• 70% Barriere
• Autocall-Level 100%
• 12 Monate Laufzeit
• Valor: 116 433 264

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Investors looking for a more diversified exposure to the banking sector can build this exposure through the EURO STOXX® Banks Index:

Barrier Reverse Convertible auf EURO STOXX® Banks (EUR)

• 7.2% Coupon p.a.
• 60% Barriere
• 12 Monate Laufzeit
• Valor: 116 433 385

 

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.