Week 49: Rock around the clock
In week 49 the carat solutions product kitchen presents an interesting topic regarding watch industry.
While Richemont was able to recover some of the losses recorded last year it seems that in case of Swatch and Fossil the bottom formation could be reached (see also chart below). The risk of a direct investment could be reduced by implementing low european barriers (49% and 59%). Our Certificate is also equipped with a decreasing coupon barrier by which the product will pay out the Coupons in case of an underlying-level above 50% (Q4) retroactively over the previous periods.
Fossil designs, manufactures, and distributes include Burberry, DKNY, Emporio Armani, Armani Exchange, Columbia Sportswear, Diesel, Frank Gehry, Karl Lagerfeld, Tory Burch, Kate Spade, Michael Kors, Callaway Golf, Davis Cup, Marc by Marc Jacobs, Skagen Designs, Michele, and Adidas.
The high memory Coupons exceed the average expected dividend yields from Swatch (2.88%) Fossil ( -- %) and Richemont (2.72%) significant.
12M Express Certificate with Memory in CHF/EUR/USD
| Currency | CHF | EUR | USD |
| Denomination | CHF 1'000.-- | EUR 1'000 | USD 1'000 |
| Maturity | 12 months (early redemption possible) | ||
| Underlying (Worst Of) | Cie Financiere Richemont SA (CFR SW) Swatch Group AG (UHR SW) Fossil Group Inc (FOSL US) |
||
| Coupon Memory with EU Barrier 49% |
16.08% p.a. | 15.95% p.a. | 19.04% p.a. |
| Coupon Memory with EU Barrier 59% |
22.95% p.a. | 22.88% p.a. | 25.68% p.a. |
| Coupon Barrier | Decreasing Q1: 65% / Q2: 60% / Q3: 55% / Q4: 50% | ||
| Observation | Quarterly / Autocall after 3 months 100%; each period decreasing -5% | ||
| Indication | 02.12.2019 | ||
| Size | 1'000'000;-- | ||
| Issuer | Rating A- minimum | ||
| Issue Price | 100% | ||
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. .
Text und analysis by Florian Franz
Partner at Carat Solutions AG
The chart provides you the development of the relevant underlyings during the last 12 months:
