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Profit from 10.00% p.a. on Swiss banks in sideways movements

Thursday, 11 February 2021 Reading time : 3 minutes

ZKB Barrier Reverse Convertible on UBS, Credit Suisse and Julius Baer
Barrier Reverse Convertibles are particularly attractive as investment instruments when the underlying equities move sideways.

The shares of the three Swiss banks UBS, Credit Suisse and Julius Baer have recovered and performed positively since March 2020, but the momentum seems to be slowing down a bit. UBS is in a solid position with its broadly diversified business model and should benefit from its investments in the Asian growth market, while Julius Baer has managed a good track record of net new money acquisition and gross margin expansion. Credit Suisse also boasts a significant increase in net new assets. ZKB Equity Research rates all three stocks as "market weights". Investors who assume a sideways movement benefit from the attractive coupon of 10.00% p.a. and a safety buffer of 33.00%.

Key Data

  • guaranteed coupon of 10.00% p.a.*
  • conservative barrier at 67.00%*
  • subscription period ends on 18.02.2021
  • Termsheet
*indicative

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