The Swiss franc cost in € as much as never before. Source: AP
UNKEL . A Swiss francs currently costs almost one U.S. dollar. That has yet to be often in the past. € In the federal currency costs even as much as never before. At € 0.78 per Swiss franc is currently the course. In view of such developments is worth looking at securities that are quoted in Swiss francs. For confidence in euro and dollar shrinks obviously .
" see the face of high public debt and increasing concern about the further development of the financial markets more investors as a safe haven currency , the Alps for their capital , "said You- Na Park, currency expert at Commerzbank. But fundamentally , the currency is founded : " The economic development in Switzerland is very positive , and the money supply has increased significantly . We therefore expect the Swiss National Bank will be the end of the year to raise the policy rate , "said Park
Attractiveness of some bonds increases
The effect: The increased value of the franc itself bonds with relatively low nominal interest rate to a sudden hit. For example, in February by the German Kreditanstalt für Wiederaufbau issued ten-year bond with a nominal rate of 2.25 percent ( WKN A1CSAY ). Since the issuance of the Stock Exchange listed the price in Swiss francs paper has increased by 6.25 percent. If the franc against the euro over the next six months with a similar pace to gain in value, with the bond price gains in the double-digit percentage range possible. The interest is then distributed as a bonus on top .
Another way to benefit from the current euphoria franc offer , interest certificates. These are exchange-traded interest rate investments that give investors access to short-term money market rates of foreign currencies – similar to a foreign currency account. The principle: "Each certificate tracks the price movement of a particular currency and collect daily on the short-term money market rates that currency. The interest is not paid, but the value of the certificate is added , "explains Florian Röbbeling by the Institute for certificates analysis ( IZA) . In the case of Swiss francs , the interest rate , however, plays little role. The interest level of the relevant certificate from the RBS (WKN 918 741 ) is present even in negative territory at minus 0.01 percent. Nevertheless , the bottom line is a remarkable performance from last years 16.37 percent.
Speculation with leverage certificates
Investors who want to disproportionately benefit from a possible continuation of the euro’s weakness against the Swiss franc can pry their capital with so-called MINI Futures, for example, issued a MINI Futures Short certificate of BNP Paribas ( WKN BN39U5 ). Each cents change in the exchange rate in this case means for the certificate a plus or minus francs . Rises or falls in the euro price by five cents , then wins or loses according to the MINI Future five francs in value – the equivalent in euros. Even small shifts in favor of the franc currency are reflected immediately noticeable positive impact in the certificate price.
Only take risks
Another advantage : MINI Futures, which rely on a weak euro gain in value faster than they can lose . For the currency gain is made in the foreign currency. The risk: " If increasing the price of the euro against the Swiss franc again, investors should timely apply the brakes . Because the closer the franc price the strike price of the Mini comes Futures , the greater the leverage effect, which then acts against the investor is, " Florian Röbbeling warns . Reaches or falls below the price of the so-called knock-out threshold, the trade is set with the certificate, and reimbursed the difference between the strike price as Knock Out and residual value. This may mean , in extreme cases a total loss of capital.