JB STEP-DOWN AUTOCALLABLE MULTI BARRIER REVERSE CONVERTIBLE ON DIGITAL PAYMENT STOCKS
Information technology stocks remain the driving force of the equity bull market and we expect this outperformance to continue. Not only are IT stocks set to benefit from powerful structural growth trends but they are also in the perfect position to benefit from ongoing economic growth due to high operating leverage and strong correlation of technology spending to gross domestic product growth. Additionally, the sector is well-protected from rising short-term interest rates as a result of its very low financial leverage.
Within the FinTech sector, we see the digital payments industry as the most attractive opportunity, supported by the rise of digital commerce, increasing smartphone penetration, rising payments complexity and regulation-led industry consolidation. Attractive structural growth will of course bring increasing global competition to the space, but we expect the high-tech entrants to continue to work with the dominant card payments networks for now, which will reap the benefits of their global near-duopoly.
Through this structured product, you can meaningfully gain exposure to the market-leading IT companies which have been assigned a BUY rating by Julius Baer Research. You can invest in CHF, EUR or USD with different coupon p.a. and benefit from a risk buffer of 35%. Additionally, with the decreasing autocall level, your chances of receiving an early repayment of 100% of capital and the accrued coupon increase during the product’s life.