Products Implementing Your Personal Strategy with Structured Products
With structured products, you can focus on any scenario that you think seems promising. The possibilities are endless. Opportunities and risks can be adjusted to your requirements with customized products.
Structured Products – Opportunities and Risks
Looking for greater flexibility and more diverse opportunities than those offered by traditional investment products? Then structured products could be an attractive addition to traditional securities. With structured products you can replicate your market view and focus on any scenario that you consider to be suitable for you.
Choose from the bank's own certificates and third-party products by renowned providers according to your requirements and market view. As well as these standardized products, you can also create customized structured products on a flexible platform with your relationship manager. More than 500 underlying assets are available to you in the form of equities, indices, foreign exchange products, and commodities.
Structured Products Combine Underlying Assets with a Deadline
Structured products are investment instruments, which combine traditional investments with derivative instruments. As underlying assets, you can choose from equities, bonds, commodities, currencies, interest, or the stock exchange index and speculate that the price will rise or fall by a specified date. It is therefore an indirect investment with a fixed term.
Categories of Structured Products
If you do not want to miss out on the opportunities offered by structured products but still want to ensure a certain amount of protection, capital protection products are best for you. A defined barrier guarantees you a minimum repayment amount, even if the product matures during the term. You will benefit from positive returns depending on the price development of the underlying asset.
With yield enhancement products, you receive predefined, fixed coupon payments. However, if the underlying asset exceeds the defined limits, this can result in partial or total loss for you. This type of product is suitable in an environment of stable or slightly rising prices. In this market environment, you will profit from higher returns than if you only invested in the underlying asset.
Participation products aim to replicate the price development of the underlying asset. They can also have other components including conditional capital protection, increased participation, or revenue if the price of the underlying asset falls or rises. Investors can speculate on rising or falling prices. If the underlying asset does not go above or below a predefined level during the term, you will receive the capital invested plus a bonus. Otherwise, this may lead to the partial or total loss of the invested capital.
Structured products are more complex than direct investments and may pose a variety of risks:
Structured products are not considered a special asset and are therefore not protected in the case of issuer insolvency. The creditworthiness of the issuer is therefore an important criterion.
Liquidity risk is the risk of not always being able to sell an investment at a reasonable price.
The market risk corresponds to the risk attached to the underlying asset.
Foreign Exchange Risk
Foreign exchange risk denotes the negative effects of fluctuations in exchange rates on the repayment value of the product and its price in the secondary market.
Structured products do not constitute a participation in a collective investment scheme within the meaning of the Swiss Federal Act on Collective Investment Schemes (CISA) and are therefore not subject to authorization and supervision by the Swiss Financial Market Supervisory Authority (FINMA).