Uncertainty - translated into volatility on the stock exchanges - pushes prices down. However, for yield enhancement products that have a short option component, increased volatility can also be beneficial, as the option premiums collected increase with volatility: Higher coupons and/or lower barriers result. For investors assuming a sideways movement or rising markets, or assuming a normalization of volatility, temporarily increased volatility allows for more attractive conditions.
Type | Valor | Underlyings | Coupon p.a. | Barrier | Duration (m) | Currency | Subsciption until |
CBRC | 127346283 | SMI®, EURO STOXX 50®, S&P 500® | 4% | 60% | 18 | CHF | 25.09.2023 |
CBRC | 127346285 | SMI®, EURO STOXX 50®, S&P 500® | 8% | 60% | 18 | USD | 25.09.2023 |