Week 26: 12M BRC on FAAG in CHF/EUR/USD
12M BRC on Tech-Giants Facebook, Apple, Amazon and Google
The technology companies Amazon, Apple, Facebook and Alphabet dominate the S&P 500. The corona crisis further expand this trend because all four corporations have profit directly or indirectly from the districtions in public life. The respective price setbacks due to market uncertanties could be more than recovered. Since the overall market has not yet reached the pre-crisis level the result is a increase in the relative market power. We too have no crystal ball and cannot foresee the direction of the courses. But we are able to develop products which replicate the market opinion of our clients 1:1.
This week we have developed a 12M Barrier Reverse Convertible with different barrier levels. On demand we'll structure this product including the popular features One Star and / or Lookback.
The guaranteed coupons exceed the average dividend yields of:
significantly.
Market opinion:
- weakening prices possible but not below the barrier level
- sideways trend
12M BRC One Star on FAAG in CHF/EUR/USD
| Maturity | 12 months | ||
| Currency | CHF | EUR | USD |
| Denomination | 1000 CHF | 1000 EUR | 1000 USD |
| Underlying (Worst of) | Amazon.com Inc (AMZN US) Alphabet Inc (GOOGL US) Facebook Inc (FB US) Apple Inc (AAPL US) |
||
| Coupon guaranteed with American Barrier 59% |
13.80% p.a. | 13.80% p.a. | 15.20% p.a. |
| Coupon guaranteed with European Barrier 69% |
13.70% p.a. | 13.90% p.a. | 15.20% p.a. |
| Observation | Quarterly | ||
| Autocall | after 6 months 95% | ||
| Indication | 24.06.2020 | ||
| Size | CHF 1'000'000;-- | EUR1'000'000;-- | USD 1'000'000;-- |
| Issuer | Rating A- minimum | ||
| Issue Price | 100% | ||
| Finders Fee | Upon request | ||
We are happy to customize the relevant components exactly to your personal preferences. Please imagine that the indications can change day by day.
Are you interested in this topic? Please contact us and we will replicate your personal market view "tailor made" with our innovative products. We would be delighted to develop further hedging - arbitrage - or speculation opportunities for you. If you have already exact ideas of your favourite product we'll generate you the best conditions from more than 25 issuers.
Text und analysis by Florian Franz
Partner at Carat Solutions AG
Please find below the chart with the development of the relevant underlyings during the last 3 years:
