UBS reverse convertible index offers deposit-beating returns

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Changes to the tax system in Germany have led to increased demand for income from investors

UBS IS OFFERING German retail investors a money-market style index that tracks a one-month reverse convertible and aims to pay an annual coupon of the European Central Bank base rate plus 3%.

The UBS Rolling Aktienanleihe Index (Rolling Reverse Convertible) is aimed at investors who are unsure of investing in the equity market and are willing to take some risk in return for regular income and a higher return than they would get from a bank deposit.

“We have seen a massive surge in reverse converti