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Monday, 25 September 2023
Reading time : 1 minute
Yield Enhancement

Low Strike BRC - Reduced Risk

With Low Strike BRC the strike that must be reached in the event of a barrier being touched is below the initial fixing. If such a barrier event occurs, the probability that all underlying prices will be above the strike at the end of the term is higher.
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.
Thursday, 31 August 2023
Reading time : 2 minutes
Investment Ideas

Capital protection with barrier

Shark notes owe their interesting name to their payoff profile, which resembles the dorsal fin of a shark. They belong to the group of capital protection products and offer investors a participation in the price development of an underlying, while the invested capital is protected against loss. This reduces the risk of loss compared to a direct investment in the underlying, while at the same time allowing participation in the upward movement.

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.
Thursday, 24 August 2023
Reading time : 2 minutes
Investment Ideas - Theme Investing

Technological Change: Seizing Opportunities

Change requires ingenuity, innovation and pioneering. Companies that develop novel technologies and processes not only drive the economy, but also make significant contributions to solving global problems such as climate change, healthcare or education. In this way, innovative companies and their technologies also promote and shape global economic development in the longer term.
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. 

Wednesday, 16 August 2023
Reading time : 1 minute

Barrier Observation at the End: Last Look BRC

For BRCs with a last-look feature, also known as a european barrier, the barrier is not relevant until the end of the last trading day of the product. If the prices of all underlyings are above the barrier - regardless of whether it has been touched or breached during the term - the investor is fully repaid. As with BRCs with regular barriers, the coupon payment is guaranteed and not dependent on the closing prices of the underlyings.
Friday, 11 August 2023
Reading time : 1 minute

UBS ends deal, Deutsche Telekom with good results

The deal agreed upon, which had obligated the Confederation to provide liquidity assistance in the event of losses in the context of the Credit Suisse takeover, was terminated by the acquiring UBS with immediate effect. 
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.

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