Week 51: 12M BRC on the biggest gold producers in CHF/EUR/USD
Risk-adjusted investments into the biggest gold producers of the world.
Analysts expect in average a gold price of 1900 USD for 2021 and also up to the end of 2023 prices below 1800 USD are not considered. Since the big gold producers could implement more effective supply chains in the last consolidation phases there is a lot of potential in this sector. More effective structures and low energy prices enable the companies to make good business also with lower prices of gold. Especially the setbacks of the last weeks and the associated increase in volatility could be used in a profitable way with risk-adjusted investments.
This week we have developed a 12M Barrier Reverse Convertible with a guaranteed coupon and optional One Star Feature on the biggest gold producers AngloGold Ashanti Ltd, Barrick Gold Corp and Newmont Corp .This product is equipped with a low Barriers (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:
- AngloGold Ashanti Ltd (0.42%)
- Barrick Gold Corp (1.57%)
- Newmont Corp (2.71%)
significantly 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 Gold Producers in CHF/EUR/USD
| Maturity | 12 months (early redemption possible) | ||
| Currency | CHF | EUR | USD |
| Denomination | 1000 CHF | 1000 EUR | 1000 USD |
| Underlyings (worst of) | AngloGold Ashanti Ltd (AU US) Barrick Gold Corp (Gold US) Newmont Corp (NEM US) |
||
| Coupon guaranteed with European Barrier 69% |
14.00% p.a. | 14.30% p.a. | 15.50% p.a. |
| Coupon guaranteed with American Barrier 59% |
13.30% p.a. | 13.50% p.a. | 14.80% p.a. |
| Coupon guaranteed with European Barrier 69% + One Star |
10.80% p.a. | 11.20% p.a. | 12.40% p.a. |
| Observation | Quarterly | ||
| Autocall | 100% after 3 months | ||
| Indication | 17.12.2020 | ||
| Size (min) | CHF 300'000;-- | EUR 300'000;-- | USD 300'000;-- |
| 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:
