My settings

23. September 2020 | Ad - News

Why Autocallable BRC on Swatch Group currently generates a high coupon

  • Of all the watchmaking companies, Swatch Group is most strongly focused on China and Hong Kong. In recent weeks, shares have benefited from the improved sentiment on the markets and, according to Vontobel analysts, have exhausted their price potential.
  • The concern of a second corona wave has also brought volatility to the stocks.

This makes the shares interesting for yield enhancement products: Barrier reverse convertibles bring higher coupons in this phase. For example, a one-year Autocallable Barrier Reverse Convertible (1230) on Swatch Group generates a coupon of up to 9.40% p.a. with an American barrier of 65% and an Autocall Level of 100% on quarterly observation.

The reasons for our assessment

  • Swiss watch exports were severely affected by the Covid-19 lock-down. In the four months from March to June, they fell globally by around 45%.
  • From a low of -96.8% in May, watch exports gradually recovered, reaching -11.9% year-on-year in August.
  • China is the market that has recovered the fastest, with an increase of 1.6% in the first eight months. This positive development has to be put somewhat in the context of the very strong decline in tourism. For example, Chinese consumers currently travel less in general, but significantly less to Hong Kong in particular. As a result, exports to Hong Kong, once the largest export market for Swiss watches, have fallen by 48% in the year to date. If the two markets are taken together, the decline is around 20%.
  • Of all the watchmaking companies, Swatch Group is most strongly focused on China and Hong Kong. Accordingly, the titles have benefited from the improved mood in recent months, particularly in China. A second wave of Corona could interrupt this positive trend.
  • Furthermore, the structurally negative trend in the lower price segment, which is driven by the shift to smart watches, is likely to continue.
  • In view of these factors, Vontobel analysts believe that the share’s upside potential is currently limited.

Legal Notices

This blog post is deemed to be marketing material within the meaning of Article 68 of the Swiss Financial Services Act (FINSA) and for informational purposes only, does not represent an investment recommendation or advice and contains neither an offer nor an invitation to make an offer. It does not replace the qualified advice necessary before any purchase decision, in particular as regards all associated risks. We will be happy to provide you with the legal binding documents such as the key information sheet or additional information as well as the information brochure “Risk Involved in Trading Financial Instruments” at any time and free of charge. Before purchasing derivative products, investors should read the relevant product documentation.

The scenarios presented in this publication do not provide any information about the real performance of the underlying and are only illustrative examples and are not the result of a financial analysis.

This blog post contains an indication of past performance. Past performance is not a reliable indicator of future results.

This blog post contains information on future performance. Such forecasts are not a reliable indicator of future performance.

This blog post was prepared by the Structured Products unit of our institution and is not the result of financial analysis.

Structured products are not regarded as collective investment schemes within the meaning of the Federal Act on Collective Investment Schemes (CISA) [status as of 1 July 2016], and are therefore not subject to the approval or supervision of the Swiss Financial Market Supervisory Authority FINMA. The value of structured products may depend not only on the performance of the underlying, but also on the creditworthiness of the issuer. The investor is exposed to the risk of the issuer / guarantor defaulting.

This blog post may not be reproduced in whole or in part without the written permission of Vontobel. The information is intended only for persons domiciled in Switzerland. All information is provided without guarantee.

We will be happy to answer any questions you may have concerning our products on +800 5440 5440. Please note that all calls to this number are recorded.

©Bank Vontobel AG. All rights reserved

Would you like to learn more about the products presented? Do you need more information about deritade, the issuing platform for structured products? Please do not hesitate to contact us. Our experts are here for you.

Phone: +800 5440 5440

Would you like to stay informed? Then subscribe to our newsletter!



Artikel teilen


Terms and conditions of use

Local access restrictions for the Vontobel website

The information on this Vontobel website is exclusively intended for people with registered domicile/place of residence in Switzerland. Visitors from other countries are not permitted access to the Vontobel website.

Conditions of use and legal information

When accessing this website of companies of Vontobel you declare to have understood and recognise the following conditions of use and legal information. If you do not agree to these conditions, do not access this website. All copyrights and other rights on the entire content of this website are exclusively and completely reserved by Vontobel Holding AG “Cosmofunding”, “Vontobel” and the Vontobel logo are registered trademarks. By using this website, the user will be granted no rights to the content, to the registered trademarks or to any other elements of this website. Downloading or printing of pages is only permitted with full reference to the source. Any other use, in particular, complete or partial reproduction or publication for a public or commercial purpose, is only permitted with the prior written agreement of Vontobel Holding AG and with full referencing.

No offer

The information and opinions published on this website in no way constitute a request, offer or recommendation to use a service, to purchase or sell investment instruments or to carry out any other transaction.

No basis for decisions, no advisory activity

This website is not an investment advisor or any other decision-making aid for financial, legal, fiscal or other consultancy questions. Neither does this website replace qualified advice necessary prior to making any investment decision, especially relating to any associated risks. No investment or other decisions should be taken based on this website. We would like to stress that past performance is not necessarily an indication of future performance and assume no liability, neither formally nor by implication, and no guarantee with regard to any future performance.

No warranty

Vontobel does in no way guarantee the correctness, reliability or completeness of the information and opinions published on the Vontobel website or of any results gained by use of this website. All available information, such as for example financial market data, market prices and any other financial market information, is based upon or by reference to carefully selected sources which are believed to be reliable. Any expressions of opinion, assessments and outlooks originate from its authors and date back to the respective date of issue. Vontobel bears no obligation or responsibility with regard to the updating or correction of such information. This website may be amended and modified without prior notice at any time.

No guarantee

Moreover, Vontobel accepts no responsibility and gives no guarantee for the correct or uninterrupted functioning of this Vontobel website, for the rectification of any errors or for the freedom of this website or the servers from viruses or any other harmful elements.

Exemption from liability

Vontobel is not liable, even in case of negligence, for damages or consequential damages resulting from, or in connection with, access to or use of, or the impossibility of access to or use of, this Vontobel website.

Links to other websites

Vontobel has not checked the other sites linked to this Vontobel website and is in no way responsible for the content of these websites. If you activate certain links, you leave this Vontobel website at your own risk.


Vontobel does not exclude the possibility that, under certain circumstances, e-mails sent to the Vontobel Group may be read, amended, diverted, falsified or destroyed by third parties. Vontobel refuses all liability for the transmission of data by e-mail.

I accept the terms and conditions above and confirm that I am resident in Switzerland and neither a US Person nor a resident of the USA or the EEA.

Privacy settings

We use cookies to make our website user-friendly for you. Please click “accept” or “customize settings” to let us know your preferences for how we can use cookies. Detailed information on the handling of cookies and data privacy, as well as your right to withdraw your consent at any time, can be found in our data privacy site.

Privacy Policy

Please take note of our Privacy Policy and our data protection Website before you use this service. By logging in and your continued use ofthis service you confirm that you have read and accepted our Privacy Policy and agree to the handling of your data in accordance with our Privacy Policy. It is important for us to confirm that your data will neither be used nor be shared with third parties for any other purposes.

I do not Accept

Register for free

deritrade is the leading multi-issuer platform for external asset managers and banks in Switzerland and Liechtenstein.

By ticking the box below, I consent that the data collected here is being recorded, processed and used by the Bank in accordance with the Privacy Policy. I further confirm that I have read and understood the Privacy Policy . I consent to the Bank passing on the collected data to other domestic and foreign companies of Vontobel and that it may be used by the Bank and other Vontobel companies for the purpose of maintaining group-wide client relationships and providing information about new products

Contact person

Thomas Stadler
Head Distribution Schweiz, Platform Solution

Telefon:+800 5440 5440

send e-mail

Please note, that if you contact us, your voluntarily communicated contact data are collected, processed and used exclusively for a specific purpose, either to receive and answer your request or for technical administration in accordance with the Privacy Policy. Requests – and respective data – from persons outside Switzerland will be deleted.