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Monday, 13 June 2022
Reading time : 2 minutes
Yield Enhancement

Catch-up potential for Credit Suisse

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.

Monday, 16 May 2022
Reading time : 2 minutes
Yield Enhancement

Holcim in transformation: seizing opportunities

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%.

Thursday, 5 May 2022
Reading time : 2 minutes
Investment Ideas - Yield Enhancement

German energy transition: Acceleration of measures

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.

Thursday, 28 April 2022
Reading time : 2 minutes
Yield Enhancement

Low Barrier Index BRC: Defensive yield Enhancement

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.

Thursday, 21 April 2022
Reading time : 2 minutes
Yield Enhancement

Weak first quarter: RCs on potential catch-ups

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%.

Friday, 1 April 2022
Reading time : 1 minute
Yield Enhancement

Swiss Underlyings: Yield with BRC

Swiss equities are among the most popular underlyings for structured products - also for yield-optimizing BRC

Friday, 25 March 2022
Reading time : 1 minute
Yield Enhancement

Growth & Yield: Chinese Tech and Bio-Pharma

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.

Friday, 25 March 2022
Reading time : 1 minute
Yield Enhancement

Low correlations: 8% p.a. with 50% barrier

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.

Wednesday, 16 March 2022
Reading time : 1 minute
Yield Enhancement

SMI BRC with Last Look

"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.


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