Whatever moves the markets: As long as they move, the tills of trading platforms ring – increasing volumes mean increasing profits. Deutsche Börse (DE0005810055) also benefits from IPOs, individual index solutions and, through the takeover of ISS, also from sustainability trends. With the almost 20 percent stake in Tradegate, it also participates in a bullish mood and a growing number of private investors. The share has moved significantly away from the high of 170 euros in July 2020; At 135 euros, it is quoted lower than before the pandemic. With certificates you can benefit from a sideways movement.
Discount strategy with 5 percent buffer (December)
For the discount certificate with ISIN DE000JM5FKL8 from JP Morgan, the price of 126.63 euros results in a buffer of almost 6 percent. The maximum amount (cap) of 135 euros results in a potential return of 8.37 euros or 11.7 percent pa. If the share closes below the cap on the valuation day 17.12.21, investors receive a payment equal to the closing price (cash settlement).
Bonus strategy with 18 percent buffer (December)
If the barrier of 110 euros for the DZ Bank’s capped bonus certificate (ISIN DE000DFX6ZW9) is never breached by the valuation date, investors will receive the bonus and maximum amount of 140 euros. The difference to the purchase price of EUR 133.14 results in a profit of EUR 6.86 (return 9.1 percent pa). The strategy is currently trading with an attractive discount of 1 percent cheaper than the share. A cash settlement will be made at the end of the term.
Income strategy with 7.1 percent interest (June 2022)
BNP’s reverse convertible bond with ISIN DE000PF8ENR7 offers interest income regardless of the share price: The fixed coupon is 7 percent pa; With the entry price just below par, the return increases to 7.5 percent pa if the share is quoted at or above the base price of 130 euros on the valuation date (17.6.22). Otherwise 7 shares will be delivered (fractions in cash).
CertificateReport conclusion: Anyone looking for a share that will benefit from fluctuating prices, IPOs and increasing interest from private investors could include Deutsche Börse in their portfolio – certificates can be a defensive entry.
This article does not constitute a recommendation to buy or sell Deutsche Börse shares or investment products based on Deutsche Börse shares. No liability is assumed for the correctness of the data.
Author: Thorsten Welgen
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