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Thursday, 30 November 2023
Reading time : 3 minutes
Yield Enhancement

Richemont Shares Require Patience

The shares of the Swiss luxury goods group have lost some of their lustre in recent months. The dry spell is not over yet, but the price correction also opens up opportunities.

Monday, 23 October 2023
Reading time : 1 minute
Yield Enhancement

Yield Enhancement Products in Spotlight

The Swiss stock market heavyweights Nestlé, Novartis and Roche together account for half of the weightings of the Swiss Market Index. The relative stability of these stocks makes them popular underlyings for defensive yield enhancement products.

Sunday, 15 October 2023
Reading time : 1 minute
Yield Enhancement

Yield Enhancement with Single Stocks

Yield enhancement products are often structured with worst-of baskets. In the case of (barrier) reverse convertibles, however, it can be quite attractive to select a single underlying - although this reduces the yield, it also reduces the probability that a strike or barrier will be undershot.
Monday, 25 September 2023
Reading time : 1 minute
Yield Enhancement

Low Strike BRC - Reduced Risk

With Low Strike BRC the strike that must be reached in the event of a barrier being touched is below the initial fixing. If such a barrier event occurs, the probability that all underlying prices will be above the strike at the end of the term is higher.
Monday, 18 September 2023
Reading time : 2 minutes
Yield Enhancement

Catch-Up Potential: Swiss Stocks

2023 has not been a veray exciting year on the Swiss stock market so far. The SMI® is up a good 3.5% (ytd), while the Swiss Performance Index®, which includes most of the remaining Swiss stocks in addition to the heavyweights from the leading index, is up about 6%. However, not all constituents of these indices can show positive performance. The shares of large corporations such as Roche and Zurich, as well as those of smaller companies, are trading below their prices at the beginning of the year. Nevertheless - or maybe because of this - favorable opportunities are emerging.

Friday, 8 September 2023
Reading time : 1 minute
Yield Enhancement

Insurers: Good Results, Yield Opportunities

Insurance stocks are popular underlyings for structured products, especially for yield enhancement products. With derivatives from Zürcher Kantonalbank, investors benefit not only from attractive conditions, but also from our bank's excellent rating.
Friday, 25 August 2023
Reading time : 3 minutes
Yield Enhancement

Opportunities from Overseas: US-Underlyings

The world's largest companies are not based in Europe, but direct their activities from the other side of the Atlantic and are listed on the American stock exchanges. If investors from Switzerland invest in this market, they have to take into account possible exchange rate fluctuations in addition to the price risk, but they benefit from the higher interest rate - an important factor for the profile of yield-optimization products; with similar volatilities, the coupons rise with interest rates.
Monday, 21 August 2023
Reading time : 1 minute
Yield Enhancement

SMI, Euro Stoxx & Co

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. 

Monday, 7 August 2023
Reading time : 2 minutes
Yield Enhancement

Reporting Seasong brings Opportunities

The reporting season is well underway, with companies from various industries and regions presenting their results for the past months. The information asymmetry between corporate management and investors decreases, creating a number of opportunities.
Thursday, 20 July 2023
Reading time : 1 minute
Yield Enhancement

Das Rückgrat der Schweizer Wirtschaft

As one of the most competitive countries in the world, Switzerland is home to a large number of companies in various industries and sectors. The media focus on large companies sometimes makes us forget that almost 60% of value added is generated by SMEs, which also account for over two-thirds of jobs - and thus fundamentally shape the domestic economy.

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