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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.
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.

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