Photo: Arnd Wiegmann / Reuters
Swiss Bank Julius Baer has offered customers a way to capitalize on the results of elections of the President of the United States in 2020. About it writes Bloomberg.
The Bank at the end of January going to release a special one-year structured notes — the portfolios, which are based on securities of U.S. companies, divided into “democratic” and “Republican”. The first, among other things, related Ford, Walmart, McDonald’s, Coca-Cola, Exelon and SunPower. The second portfolio includes paper technology and financial companies, for example, Alphabet (parent company Google), Amazon, Citigroup, Visa, American Express, Chevron, ConocoPhilips.
The yield of such notes depends on changes in the value of the underlying assets. In this case the Bank offers the investors to bet on the fact that the cost of “national” securities will soar if the government remains the current President, Donald trump or other representative of the Republican party. On the other hand, investors can invest in “democratic” notes and put on a fundamental change of US policy with the victory of the democratic candidate.
The decision to issue structured notes is not an invention of Julius Baer. During the presidential election in 2016, when the presidency competed Donald trump and Democrat, former U.S. Secretary of state Hillary Clinton other financial institutions also issued similar instruments.
The U.S. presidential election is scheduled for November 3, 2020. The current head of state has already announced plans to run for a second term. Dozens of people expressed their intention to be nominated by the Democratic party. Among them are former Vice-President of the USA Joe Biden, Senator Bernie Sanders and U.S. billionaire and former new York mayor Michael Bloomberg.
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