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.
Unlike many sectors, pharmaceutical companies are among the so-called anti-cyclicals. While their share prices often rise less strongly in boom times than those of cyclical stocks, they demonstrate their defensive qualities in more difficult market situations. Stable earnings and comparatively reliable dividend growth support the share prices of companies whose products sell even in times with an uncertain market outlook.
Instability continues to move the global markets, and high equity volatility is unsettling conservative investors. In such market situations, structured products with defensive parameters are particularly suitable for adjusting the risk-return ratio to the increased volatility.
One of the most attractive technological developments at the moment is the emergence of a completely digital parallel world, the Metaverse. This new technology platform represents the next step in the development of the Internet and combines social networking, online gaming, virtual reality, digital travel, shopping, etc.
In turbulent markets and an uncertain outlook, more conservative investment solutions are in demand. Barrier Reverse Convertibles with defensive parameters offer interesting return opportunities even with lower risk.
Chemistry has become indispensable in almost all products of daily life. Switzerland is home to three leading chemical companies: Sika, Clariant and Givaudan.