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.
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.
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.
ZKB Callable Barrier Reverse Convertible on worst of Vale SA/Starbucks Corp/Adobe Inc 132912438 / CH1329124387 |
ZKB Callable Barrier Reverse Convertible on worst of SunPower Corp/Sunrun Inc 127344767 / CH1273447677 |
ZKB Autocallable Barrier Reverse Convertible auf ON Holding AG 127345566 / CH1273455662 |
ZKB Callable Barrier Reverse Convertible on worst of Swisscom AG/Kuehne + Nagel International AG/Sik... 130397238 / CH1303972389 |
ZKB Barrier Reverse Convertible on worst of ABB Ltd/Swisscom AG/Roche Holding AG/Swiss Re AG 127347485 / CH1273474853 |