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Yield Boosters

Give your portfolio a boost
with our enhanced-yield structured products.

Harvest attractive returns
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Barrier Reverse Convertibles are accessible structured products designed
to enhance your portfolio’s yield
in sideways markets with a controlled risk level.

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Simple and transparent

pre-packaged investment, ideal as a first foray into structured products

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Enhanced-rate coupon

independently of the performance of the underlying

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Mitigated risk of loss

compared to direct investments in the underlying

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Pricing
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(zero)
subscription fee*

Our pricing model is uncomplicated, transparent and fair.

*Excluded third-party fees, stamp duty, if any, and real-time fees.

Our weekly selection
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Swissquote offers new BRCs every week with different underlyings and issuers.
Subscription to each BRC is available for a limited period.

Ready to subscribe? We are happy to answer you by phone (+41 44 825 88 88) from Monday to Friday (08:00 - 22:00).

Custom Structured Products*

If you can dream it, we can create it for you! Get in touch to request a custom structured product made to your specifications.

Request custom product:
+ 41 44 825 88 88

*A minimum investment of CHF 20'000 is required to create your own Yield Booster (BRC) via Swissquote.

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How do Barrier Reverse Convertibles (BRC) work?
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When you subscribe to a barrier reverse convertible, you accept to limit the maximum return in exchange for a guaranteed coupon providing superior yield. This makes it an ideal instrument in market environments that are stagnating or on a slow rise or decline.

A BRC typically provides a better performance than its underlying product in all scenarios except a sharp price rise above the return cap.

Diagram

The 5 main variables of Barrier Reverse Convertibles

Underlying
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A BRC can be based on one or more underlying products. BRCs with multiple underlyings allow higher coupons or lower barriers, but come with a higher risk level.


 

Maturity
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The period between the initial date and the maturity date. The longer the period, the more attractive the coupon.



 

Coupon
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The coupon is the interest rate paid to subscribers, regardless of the performance of the underlying.



 

Continuous barrier
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If the defined barrier is never crossed, you receive the nominal invested amount plus the coupon at maturity. If it is crossed, the product becomes a reverse convertible, meaning you receive the underlying products or the cash value (plus the coupon).

Currency
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Swissquote’s Yield Boosters are quanto derivatives: the denomination of the product can differ from the underlying, allowing to invest in foreign assets without the foreign exchange risk.
 

The subscription process

You can cancel anytime by phone during our opening hours while the subscription period runs – you are only charged once the BRC is allocated to you at the end of the subscription period.

No provision will be taken from your account during the subscription period. This means that you should leave sufficient buying power on the account for the allocation to happen at the end of the subscription period.

Note: Swissquote also reserves the right to cancel a BRC offer during the subscription period, in which case you will be informed by the end of the subscription period.

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Glossary
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Derivatives

A derivative is a financial security or instrument that derives its value from underlying assets, such as commodities, currencies (including crypto), stocks, bonds, market indexes and more. The price of the derivative is determined by fluctuations of those assets.

BRC

At Swissquote, Yield Boosters refer to Barrier Reverse Convertibles (BRC). The Barrier Reverse Convertible, or BRC, is one of the most popular yield enhancement products in Switzerland. BRC is a special variant of the classic reverse convertible, which sees the holder give up potential upside exposure to an underlying asset in exchange for an enhanced coupon. The holder also avoids downside exposure, unless a predefined barrier is broken through.

A sideways trending market is the best scenario for BRC as the product will always outperform its underlying asset on the downside, and will also outperform if the asset doesn’t rise by more than the coupon.

Underlying

The underlying is a stock or bond on which derivatives (such as futures, ETFs, and Swissquote’s Yield Boosters) are based. Any fluctuation or movement of the underlying will affect the pricing of the derivative.

Maturity

The maturity date is the agreed date that an investment ends: the principal is repaid and interest payments stop. The term is most commonly used for bonds, but is also applied to Swissquote’s Yield Boosters.

Coupon

A coupon is the amount of annual interest paid on our Swissquote’s Yield Boosters or on bonds. Expressed as a percentage of the face value, the amount is paid out periodically from the issue date until the maturity date.

Continuous barrier

A continuous barrier option is a complex type of derivative where the payoff depends on whether the underlying asset touches, exceeds or falls below a pre-determined piece. A breach of the threshold value of the barrier will trigger a change in the pay-off conditions. Is is also known as an American style barrier.

Currency

Swissquote’s Yield Boosters are quanto derivatives, meaning the underlying is expressed in one currency, and settled in another. This gives investors exposure to foreign assets without a corresponding exchange rate risk.

Strike price

The strike price, or exercise price, is the price at which the underlying asset of a derivative can be bought or sold. It’s the most important determinant of option value, and triggers the ability of an investor to buy or sell, depending on whether a call or put option was purchased.

Cap

A cap included in structured products allows for investors to benefit from more attractive conditions with a sideways trend of prices, but may also limit the investor’s profit potential.

Nominal

Bonds are traded as percentages of their nominal value, which is the original value without any adjustments having been made for inflation or other factors that might affect its price. Bonds are typically repaid at their nominal value on reaching maturity.

Soft-callable

A soft call provision can make a derivative more attractive for investors as it requires the issuer of a bond to pay a premium should the bond be called earlier.

Callable

If a Yield Boosters structured product is callable, it may be redeemed early by the issuer. If this occurs, investors are generally compensated by a more attractive interest or coupon rate.

Auto-callable

Auto-callable Yield Boosters have an automatic call feature that triggers when the underlying passes an upside barrier prior to the date of maturity. The product is considered matured, and the issuer returns the investor’s principal, and an above-market coupon.

Non-callable

Non-callable Yield Boosters cannot be redeemed by the issuer prior to the date of maturity. These products come with lower interest rates, which is balanced by a lower level of risk for the investor.

Quanto

The underlyings of our Yield Boosters structured products are often listed on their home stock exchanges in foreign currencies, exposing the investor to currency exchange risk. A quanto feature protects the investor from exchange rate fluctuations while offering exposure to foreign assets.

Physical delivery

Physical delivery occurs when the settlement of securities are exercised and shares are made available at the strike price. If the investor chooses physical delivery over a cash settlement, the underlying shares will be delivered to the investor’s brokerage account.

Cash settlement

Cash settlements occur when an investor opts for a cash settlement when securities reach a settlement date. The net cash position is delivered to the investor’s brokerage account, rather than the underlying assets.

Legal Information
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Legal Information

In accordance with CISA, structured products are not deemed to be collective capital investments and are therefore not subject to authorization or supervision by FINMA.

The information and details on financial products mentioned on this website do not constitute an offer, a transaction strategy or advertising materials. Nor should they be interpreted as a solicitation or offer to buy or sell any financial instruments in any jurisdiction whatsoever. The information provided is general in nature. It does not take account of investor’s investment objectives, the composition of their portfolio, their financial situation or any specific needs or requests.

Before entering into a financial transaction, investors must check that the information provided is appropriate to their personal circumstances in terms of legal, regulatory, tax and other consequences, and should seek the assistance of a professional adviser, where necessary. Past performance is not a reliable indicator of and provides no guarantee in relation to future results. Investors confirm that they are aware of the risks inherent in derivatives trading, such as but not limited to, currency risk, interest rate risk, market risk, concentration risk and insolvency risk, and are aware that financial transactions may be highly speculative and may result in losses as well as profits. To obtain further information about the risks involved, investors should read the brochure entitled "Risks inherent in trading financial instruments", as well as Swissquote Bank Ltd’s ("Swissquote") Legal documentation.

None of the structured products containing US underlyings sold by Swissquote may be offered or sold within the USA, or to persons who are US citizens, are resident in the USA, or are required to pay taxes in the USA. Products and services of Swissquote are only intended for those permitted to receive it under local law.