Englisch

Leaving savings on your account is not a good idea with the current inflation rate. But where should you invest if markets stagnate? There’s a good answer to that: a Barrier Reverse Convertible, in short “BRC”. With BRCs, you generate attractive returns significantly higher than the usual market interest rate, even in retracting markets. BRCs can also be adapted to your individual risk profile.

Discover a proven and innovative investment.

Explanatory video

Barrier Reverse Convertibles

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How the product works

Barrier Reverse Convertibles (BRC) reference one or more underlyings and pay out a guaranteed coupon during their term. At maturity, your invested capital is completely redeemed if none of the underlyings closes at or below the respective barrier at the expiry date (EU barrier) or has never traded at or below the respective barrier during their entire term (US barrier). If the barrier was touched and one of the underlyings closes below its price at which the product has been issued, the capital is converted into a previously defined number of shares of the underlying with the worst performance.

BRC characteristics

The coupon is paid out regardless of the development of the underlying.

If the barrier is not touched, the entire amount plus the coupon is paid back.

Lower risk of loss in comparison to a direct investment in the underlying.

Multiple underlyings allow for higher coupons or lower barriers. The risk of loss is higher than with a single underlying and with a direct investment.

The maximum yield is restricted to the coupon and no dividends are paid.

The coupon is paid out regardless of the development of the underlying.

If the barrier is not touched, the entire amount plus the coupon is paid back.

Lower risk of loss in comparison to a direct investment in the underlying.

Multiple underlyings allow for higher coupons or lower barriers. The risk of loss is higher than with a single underlying and with a direct investment.

The maximum yield is restricted to the coupon and no dividends are paid.

Do you want to find out more about Barrier Reverse Convertibles?

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Products

You can get BRCs here

You can obtain Barrier Reverse Convertibles from your consultant at your local bank or from one of the following issuers.

Handbook "Strukturierte Produkte und Derivate für Pensionskassen"

Börsentag Zürich 24. August 2024

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Create a BRC and see how it would have performed in the past

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