Investment Ideas (34) | Know-how (6) |
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Yield Enhancement (129) |
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.
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.
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.
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.
ZKB Callable Barrier Reverse Convertible on worst of SunPower Corp/Sunrun Inc 127344767 / CH1273447677 |
ZKB Barrier Reverse Convertible with Conditional Coupon on worst of ams-OSRAM AG/TEMENOS AG 121488823 / CH1214888237 |
ZKB Barrier Reverse Convertible auf ams-OSRAM AG 125291282 / CH1252912824 |
ZKB Callable Reverse Convertible auf ams-OSRAM AG 121488350 / CH1214883501 |
ZKB Barrier Reverse Convertible on worst of Logitech International SA/ams-OSRAM AG 127346449 / CH1273464490 |