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Thursday, 6 July 2023
Reading time : 2 minutes
Yield Enhancement

Attractive Coupon with Swisscom, Swiss Life and Julius Bär

Barrier Reverse Convertibles allow for an attractive yield while reducing risk compared to direct investments.
Wednesday, 17 May 2023
Reading time : 1 minute
Yield Enhancement

Richemont with good results

The luxury goods group not only grows more strongly than its major rival LVMH in the first quarter of 2023, but also exceeds the sales growth of the industry. The good market position is further strengthened, the dividend is set above analysts' estimates. The share price performance is also impressive (+28% YTD). ZKB yield enhancement products on Richemont shares can be suitable for investors who expect a slowdown in share price but still want to take advantage of yield opportunities.
Thursday, 11 May 2023
Reading time : 3 minutes
Yield Enhancement

Correlation as a return driver

Not only the implied volatility of a basket of stocks influences the return of a BRC, the correlation of the stocks in a basket can also push the option price up or down. The closer the correlation is to 1, the more similar the price movements of these stocks. The resulting reduced probability of a barrier hit is reflected in the option premium, which is lower compared to less correlated baskets. With lower basket correlations, the option premium - and thus the coupon of a BRC - rises.
Thursday, 27 April 2023
Reading time : 2 minutes
Yield Enhancement

Strong Q1 Results, attractive Opportunities

The reporting season is on, with listed companies presenting their results for the past quarter in the days to come. Some of these companies have already presented strong results, including some blue chip firms from Switzerland.
Monday, 24 April 2023
Reading time : 2 minutes
Yield Enhancement

Barrier Observation at Maturity: Last Look BRC

"Last Look BRC" have the characteristic that the barrier is not relevant until the expiration of the BRC, until then no barrier events can take place - price declines, where the barrier is temporarily undercut, have no effect on the payout,
Friday, 17 March 2023
Reading time : 2 minutes
Yield Enhancement

10% p.a. with Sika, Swiss Life and Lonza

With increased uncertainty in the stock markets, it can be challenging to find investment opportunities with risk-reducing but still attractive characteristics. This is where barrier reverse convertibles with defensive parameters can be suitable. Increased volatility provides attractive option premiums while defensive barriers reduce the likelihood of a barrier being breached.

The shares of these three companies are rated "overweight" by ZKB Equity Research.

Wednesday, 8 February 2023
Reading time : 2 minutes
Yield Enhancement

Yield Potential in Tech Stocks

Improving cost efficiency could boost their stocks again. Slowing inflation, normalization of supply chains, and the economic potential of various AI technologies also seem to have encouraged investors - since early 2023, the biggest tech stocks have been moving in an upward channel again.

Wednesday, 16 November 2022
Reading time : 2 minutes
Yield Enhancement

Swiss Life: growing earnings

The figures presented by the life insurer last week showed that the expansion of commission-based business has paid off so far. Since the beginning of the year, Swiss Life has increased income from this business area by 13%. Thanks to the robust economic situation in Switzerland and the stable demand for real estate, Swiss Life has also been able to record appreciation gains on its properties - an important asset class for the company.

Wednesday, 9 November 2022
Reading time : 2 minutes
Yield Enhancement

Interest Margins: an important Source of Income for Banks

Many of the quarterly results reported by European banks in recent weeks exceeded analysts' profit estimates. In particular, financial institutions from the euro zone were able to increase their profits noticeably in the third quarter. A key source of income for all universal and retail banks is the interest margin business, the profitability of which is significantly influenced by the general interest rate situation in the respective economic area.


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