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Risky bets on fluctuating rates


Sind die Kurse auf Zick-Zack-Kurs, lohnt sich ein Investment in Zertifikate oft nicht. Quelle: ap

Are the prices on zig-zag course, are often not worth an investment in certificates. Source: AP

UNKEL. There are hundreds of certificates. In Germany alone. As should be but a few among them, which in and benefit directly to the volatility, betting the nervousness in the markets can be. But far from it. First, there are not many such certificates. And second, investors with the products have almost always made loss if the stock market fluctuated in fact times stronger. Therefore, private investors in the Certificates, be extremely careful.

The reason for the poor performance of volatility certificates is their construction. Principle is based on an underlying security certificates. About a share. Bet you with the certificate that the stock price rises, is also gaining the certificate, if the stock actually At length. But volatility certificates is based on a volatility index, or about the VDaxNew VSTOXX.

The problem: The indices are not directly tradable. There are only futures on it, invest in the issuer’s monthly basis. Sasa Perovic by the rating agency Scope of the problem explains: "Because especially in periods of low volatility always exists the fear of rising volatility, could the next and future is almost always more expensive than the current one.’s Why investors for the same money get less Futures shares. This results in endless certificates on volatility indices in the exchange of a futures in the next often called rolling losses. "

They are so striking that investors made in the past with almost all the volatility, even with allowances rising market volatility loss. Even with the single volatility investments of this kind on the market, three Exchange Traded Notes on the VSTOXX (ISIN: DE000BC2KTT9) and the S & P500Vix (DE000 BC1C7Q6 and DE000BC1C7Q6), investors must expect negative effects Roll. The issuer promises, however, diminish with a new roll mechanism for this effect somewhat.

The increased volatility has also practical implications for the prices of other certificates. For behind virtually all the papers lies a combination of options. For example, discount certificates: The papers are less expensive than the respective Underlying to which they relate. This is possible because the issuer sold on the futures exchange options on that underlying. These proceeds will be passed as a discount to the investor. The effects vary: the more violent the stock prices, the more expensive options and the more discount offer new discount certificates.

On the prices of discount certificates issued the increasing volatility has, unfortunately, a negative effect. This is true for the vast number of types of certificates in the market. "Only a few plant derivatives benefit from a rise in volatility," says Lutz Johanning, a professor at WHU in Vallendar.

Bad times for so many certificate holders. For increasing the volatility. So the New VDAX, which measures the volatility of the DAX, rose in recent days from 18 to 27 points, the price of the VSTOXX, the volatility index for the Euro Stoxx 50, rocketed from 20 to more than 33 points.