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Defensive barriers, attractive coupons

Thursday, 3 November 2022 Reading time : 1 minute

Defensive structures with low barriers allow investors - despite an uncertain outlook - to generate attractive coupons with moderate risk. Barrier Reverse Convertibles with Nestlé, Novartis, Roche and Zurich as underlyings offer particularly interesting features. These stocks together account for about 60% of the weight of the SMI and are less volatile than most other members of the index.

This is reflected in the 1-year maximum drawdown, i.e. the difference between a stock's highest level and its lowest subsequent price within a year. Among these four stocks, Roche has the highest drawdown of -28%, while the others range between -16% and -17%.

With a barrier of 49%, the price of an underlying of a BRC would have to fall by more than 50% within the term for a potential loss to occur.

Type Valor Underlyings Coupon p.a. Barrier Duration (m) Currency Subsciption until
CBRC 121487385 Nestlé, Novartis, Roche, Zurich 7.50% 59% 18 CHF 23.01.2023
               
CBRC 121487483 Nestlé, Novartis, Roche, Zurich, Richemont 8.00% 49% 18 CHF 25.01.2023
BRC 121487485 Nestlé, Richemont, Lonza, Holcim, Novartis 11.00% 59% 12 CHF 25.01.2023
CBRC 121487487 Nestlé, Richemont, Lonza, Holcim, Novartis 13.00% 59% 12 CHF 25.01.2023
BRC 121487387 Sika, Holcim, Swiss Life, Alcon, Richemont 9.00% 50% 12 CHF 23.01.2023
CBRC 121487388 Sika, Holcim, Swiss Life, Alcon, Richemont 15.00% 59% 12 CHF 23.01.2023
               
BRC 121487412 Moderna Inc 13.00% 49% 12 USD 20.01.2023
BRC 121487414 Tesla 18.00% 49% 12 USD 20.01.2023
BRC 121487396 UBS, Julius Bär, Credit Suisse 9.00% 49% 12 CHF 23.01.2023
BRC 121487398 ams-OSRAM 13.00% 49% 12 CHF 23.01.2023
BRC 121487403 SAP, Siemens, Mercedes-Benz 8.00% 49% 12 EUR 23.01.2023
BRC 121487413 NVIDIA Corp, Advanced Micro Devices Inc, QUALCOMM Inc 17.00% 49% 12 USD 23.01.2023
BRC 121487415 McDonald's, General Motors, Walmart 8.00% 49% 12 USD 23.01.2023



 

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. 


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