Callable Barrier Reverse Convertibles in CHF
In today's world where a tweet can have a massive impact on your wealth, diversification has become even more important in order to smooth portfolio returns. In that respect, exposure towards CHF-denominated assets is value-adding not least due to the currency's favourable correlation metrics.
Over the past decade, figures have shown that a Swiss investor would have earned more when investing at home rather than going international (especially, if unhedged), as the strong Swiss franc overrules any headwinds caused to equity earnings. Similarly, foreign investors can benefit from the strong Swiss francs as it adds to the overall performance.
On that front, should you expect neutral to moderate performance on selected stocks, it would be worth considering yield enhancement products on Swiss stocks.
- Barrier reverse convertibles are aimed at investors who expect neutral to moderately positive performance of the underlying, but do not exclude that minor market corrections may occur. The strategy of these products represents an investment in the underlying equity.
- These products pay a quarterly coupon, are denominated in CHF, and the invested capital is protected up to the knock-in barrier.
- If the barrier is breached during the lifetime of the product and the underlying stock trades below the initial strike level at maturity, the product is settled by delivering a predefined number of stocks (physical settlement).
|46392721||6.80% p.a. JB Callable Barrier Reverse Convertible (80%) on Alcon Inc||SAFVJB||27/07/2020||-0.72%||CHF||96.70||97.20||10.58%||9.71%|
|46392719||8.25% p.a. JB Callable Barrier Reverse Convertible (62.5%) on Julius Baer||SAFOJB||27/07/2020||-0.32%||CHF||93.80||94.25||15.73%||14.45%|
|46392720||7.35% p.a. JB Callable Barrier Reverse Convertible (80%) on Novartis||SAFPJB||27/07/2020||+0.05%||CHF||100.40||100.90||7.12%||6.54%|