derinet® Switzerland

6.00% p.a. Callable Multi Barrier Reverse Convertible on ABB, Richemont, Sika, UBS Group, Zurich Insurance

  • Valor 45081058
  • ISIN CH0450810582
  • Symbol RMBXFV
Product expired on 17/05/2021
  • (Issuer) Callable
  • sustainable
Zurich Insurance Group LtdCHF 
Compagnie Financière Richemont SACHF 
Please note that this is an indication.


Laid-back investing thanks to a generous safety buffer

Laid-back investing thanks to a generous safety buffer

01 August 2019

The Barrier Reverse Convertibles in subscription not only offers a generous safety buffer, but their “Callable” feature enables an additional yield boost. This is particularly interesting for investors who are seeking a safe haven alternative in the current, uncertain market environment.


Even though the stock market has performed rather well over the past year, uncertainty and insecurity amongst investors persists. Despite recent agreements in the U.S. – China trade negotiations, Brexit talks remain tense and keep spectators around the globe in anxious anticipation for the potential outcomes. An expected slowdown in global market activity is only hampering expectations further.

However, even under these conditions, one must not necessarily abandon equity investments altogether. After all, structured products offer numerous ways through which investors can participate in a variety of market conditions. The more risk-averse investor for instance might consider the conservatively structured Barrier Reverse Convertible an interesting investment case. Due to their low barrier (40%), these products offer a generous safety buffer that shields investors from possible price setbacks of up to 60%. Only once this barrier is reached, is the investor exposed to the performance of the weakest underlying. The investor additionally bears the credit risk of the issuer.

On each observation day, Vontobel (as the issuer) holds the right to
call the (Callable) Multi Defender VONTI and to repay it on the next
coupon payment date. In case of an early redemption, the repayment
consists of the nominal value plus the (last) coupon.





The “Callable” feature offers an additional yield boost. The corresponding possibility of an early redemption means that the investor bears the reinvestment risk and is therefore compensated by opportunities for additional yield. This makes the product an ideal solution for investors who on the one hand anticipate stagnating- or slightly rising prices, yet on the other hand cannot rule out price setbacks up to the barrier level.

24/09/2021 19:34:09