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UBS ends deal, Deutsche Telekom with good results

Friday, 11 August 2023 Reading time : 1 minute

UBS terminates loss protection deal
The deal agreed upon, which had obligated the Confederation to provide liquidity assistance in the event of losses in the context of the Credit Suisse takeover, was terminated by the acquiring UBS with immediate effect. At the subsequent press conference, Federal Councillor Karin Keller-Suter stressed that although this decision had been taken by the big bank, it was in the interests of the Swiss Confederation - taxpayers would no longer bear any risks from these guarantees, and in addition the Confederation would incur no financial losses from the takeover. 

The market received these developments as good news. The shares of the banking group rose in pre-market trading and are currently trading at over CHF 20.00*, after ending yesterday's trading day at CHF 19.41.

Deutsche Telekom: Strong market position, ambitious targets
The international telecommunications group presents good results for the first half of 2023, with EBITDA up by a good 1.2% and a target of EUR 41 billion by the end of the year. Compared with the previous year, this would represent an increase of almost 800 million - this target was re-confirmed. Thanks to good positioning and strong growth in the US business, the analyst consensus continues to recommend the stock as a buy.

Opportunities
Investors who want to benefit from current developments but do not want to bear the full price risk of a direct investment can generate attractive returns with yield enhancement products from Zürcher Kantonalbank:

Callable BRC on UBS

  • 7.5% coupon p.a.
  • 60% barrier
  • 18 months Term
  • Termsheet

Last Look Callable BRC on UBS

  • 6.8% coupon p.a.
  • 70% barrier, observed at maturity
  • 18 months maturity
  • Termsheet

Callable BRC on Deutsche Telekom (EUR)

  • 6.7% coupon p.a.
  • 65% barrier
  • 12 months maturity
  • Termsheet

Callable BRC on UBS and Deutsche Telekom (CHF)

  • 8.5% coupon p.a.
  • 60% barrier
  • 12 months maturity
  • Termsheet


indicative information
*as of 11.08.2023, 11:55 a.m.


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