Market snapshot: making the most of volatility

Market snapshot


The highest coupon offered on a reverse convertible note in the US in March was the 27.27% annual return available on a UBS product linked to the common stock of Research In Motion. The size of the coupon was attributed to the high volatility of the underlying. When the volatility of an underlying asset is high there is a greater chance of hitting the protection barrier, which therefore requires a higher annual coupon to compensate for the higher potential for loss.

Retail investment in publicly

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: