The sun rises in the east 12M BRC on Alibaba, Tencent, Baidu and Pinduoduo in CHF/EUR/USD
12M BRC on Alibaba, Tencent, Baidu and Pinduoduo in CHF/EUR/USD
The sun rises in the east. Even though the operative results has been positive, the investors of the 4 chineese tech giants has little to laugh in the last months. The tension between China and the US and the threat of delisting from the US-Stock Exchange put the stocks under pressure. But now we see light at the end of the tunnel. Use the volatility for a risk adjusted investment.
Our 12M Barrier Reverse Convertible with a guaranteed coupon and optional One Star Feature. This product is equipped with a low Barrier (european or american). The structure is particularly suitable for investors those a direct investment seems to risky. It is also a great and effective diversification option of your portfolio. To provide additional security mechanisms we will construct this product also with the popular One Star Feature.
One Star Feature
Even in case of a barrier event, if the best-of (at least one of the underlyings) ≥ 100% at maturity; redemption = 100%. So the One Star Feature provides a second chance.
The guaranteed coupons exceed the average dividend yields of:
- Alibaba Group Holding Limited (BABA US) ( - )
- Tencent Holdings LTD (700 HK) (0.31%)
- Pinduoduo Inc (PDD US) ( - )
- Baidu Inc (BIDU US) ( - )
and provide also a conditional capital protection.
Market opinion:
- weakening prices possible, but not below the barrier level
- sideways trend or slightly rising underlying
12M BRC on Tech Companies in CHF/EUR/USD
| Maturity | 12 months (early redemption possible) | ||
| Currency | CHF | EUR | USD |
| Denomination | 1000 CHF | 1000 EUR | 1000 USD |
| Underlyings (worst of) |
Alibaba Group Holding Limited (BABA US) |
||
| Coupon guaranteed with European Barrier 69% |
13.75% p.a. | 14.60% p.a. | 15.20% p.a. |
| Coupon guaranteed with European Barrier 59% |
9.60% p.a. | 10.00% p.a. | 10.80% p.a. |
| Coupon guaranteed with American Barrier 59% |
14.40% p.a. | 14.60% p.a. | 15.60% p.a. |
| Observation | Quarterly | ||
| Autocall | 100% after 6 months | ||
| Indication | 16.06.2021 | ||
| Size (min) | CHF 350'000;-- | EUR 350'000;-- | USD 350'000;-- |
| 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 12 months:
