Week 49: 12M BRC Emerging Markets in USD/EUR/CHF
Risk-adjusted investment on Emerging Markets in CHF/EUR/USD
Optimism is back.The end of the political uncertainty after the US-election and the positive vaccine updates support also the emerging markets. The MSCI Emerging Markets has started to outperforme the S&P 500 during the second semester and most of the analysis are assuming that 2021 will continue on the same basis.
This week we have developed a 12M Barrier Reverse Convertible on EWZ UP (Brasilia), EEM UP (Basket Emerging Markets) and EWW UP (Mexiko).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.
Market opinion:
- weakening prices possible, but not below the barrier level
- sideways trend or slightly rising underlying
12M BRC on Emerging Markets Indices in CHF/EUR/USD
| Maturity | 12 months (early redemption possible) | ||
| Currency | CHF | EUR | USD |
| Denomination | 1000 CHF | 1000 EUR | 1000 USD |
| Underlyings (worst of) | ISHARES MSCI EMERGING MARKETS (EEM UP) ISHARES MSCI BRASILIEN (EWZ UP) ISHARES MSCI MEXICO (EWW UP) |
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| Coupon guaranteed with European Barrier 69% |
8.80% p.a. | 8.80% p.a. | 10.00% p.a. |
| Coupon guaranteed with American Barrier 59% |
9.60% p.a. | 9.60% p.a. | 10.90% p.a. |
| Observation | Quarterly | ||
| Autocall | 100% after 3 months | ||
| Indication | 01.12.2020 | ||
| Size | CHF 500'000;-- | EUR 500'000;-- | USD 500'000;-- |
| Issuer | tbc | ||
| 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:
