| Investment Ideas (55) | Know-how (12) |
| MeinIndex products (11) | Theme Investing (34) |
| Yield Enhancement (202) |
According to the Bloomberg analyst consensus, more than 60% of analysts continue to recommend holding the share, and ZKB Equity Research also rates the share as "market-weighted". The price-to-book ratio, which compares the market value of a company with its book value, is 0.35 for Credit Suisse, which may indicate a significant undervaluation.
With sales growth of 20%, rising sales prices and strategically effective acquisitions, Holcim opens the financial year with a strong first quarter. The building materials producer significantly exceeded analysts' consensus estimates, particularly in terms of EBIT. The Solutions & Products segment in particular is expected to continue to grow strongly; in 2022, the segment should account for at least 17% of Group sales, which would correspond to an increase of 3%.
The "Easter Package" indicates that the share of renewable energies in the german electricity mix is to grow to 80% by 2030, which would correspond to a doubling. From 2035, all electricity generation is even to come from renewable sources.
Leading indices such as the SMI®, the Euro Stoxx 50® or the S&P 500® have comparatively low volatilities as aggregates of their weighted underlyings, which means that the probability of a knock-in is lower than for individual stocks. However, this probability can be further reduced by means of two parameters.
The first stock market quarter of 2022 was characterized by rising inflation, rising interest rates and geopolitical uncertainties, which had a noticeable impact on the performance of the stock markets. Year-to-date, i.e. from January 1, 2022 to the present, no Western benchmark index was able to break even. The Euro Stoxx 50 stands at -8.5%, the S&P 500 at -6.7% and the SMI at -3.8%.
Swiss equities are among the most popular underlyings for structured products - also for yield-optimizing BRC
For yield enhancement products, increased volatility leads to higher coupons - especially for (C)BRC this is interesting, because despite very low barriers coupons above 15% p.a. can be realized.
If underlyings with low correlations are selected for BRC, the probability of a barrier event increases, but so does their return potential; in combination with the still slightly increased volatility, attractive return profiles result even for very defensive barriers and over-the-year maturities.
"Last Look BRC" have the characteristic that the barrier is only considered at the expiration of the BRC - shorter-term price declines, where the barrier is temporarily undercut, have no effect on the payout, provided that the price of the underlying is again above the barrier level at maturity; in this case, investors:inside receive a full repayment. So if turbulent markets are expected in the coming months, products with Last Look feature may be suitable to reduce the risk compared to "classic" BRCs.