Week 46: Risk-adjusted Investments on Alibaba, Netflix and Twitter
12M BRC (One Star) on Alibaba, Netflix and Twitter in USD/EUR/CHF
This week we have developed a 12M Barrier Reverse Convertible with a guaranteed coupon and optional One Star Feature on the tech companies Alibaba, Twitter und Netflix.This product is equipped with a low Barrier 59% (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 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) ( - )
- Twitter (TWTR US) ( - )
- Netflix (NFLX 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) Twitter (TWTR US) Netflix (NFLX US) |
||
| Coupon guaranteed with European Barrier 59% |
12.40% p.a. | 12.60% p.a. | 13.80% p.a. |
| Coupon guaranteed with American Barrier 59% |
18.30% p.a. | 18.40% p.a. | 19.30% p.a. |
| Coupon guaranteed with American Barrier 59% + One Star |
13.80% p.a. | 14.20% p.a. | 15.20% p.a. |
| Observation | Quarterly | ||
| Autocall | 95% after 6 months | ||
| Indication | 12.11.2020 | ||
| Size | CHF 1'000'000;-- | EUR 1'000'000;-- | 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 12 months:
