Report published September 28, 2026
Equity Reverse Convertibles Tactical Opportunity List: Reverse Convertible Thematic Ideas – UBS Research
UBS · September 28, 2026
UBS CIO presents its tactical opportunity list of equity reverse convertibles across key regional and thematic preference lists. Although single-stock implied volatility has eased recently, it remains elevated relative to historical averages, providing attractive coupon yields for defensive positioning and 'buy on dips' strategies.
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Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.Single-stock implied volatility has fallen in recent weeks but remains at a premium to long-term averages, providing attractive conditions to sell volatility via reverse convertibles.
- 2.Reverse convertibles allow investors looking to buy on dips to generate enhanced yield while waiting to acquire underlying preferred stocks at a discount (typically a 90% strike).
- 3.Candidates are screened across prominent CIO themes (AI, Power and Resources, Longevity, Automation) and regions (US, Switzerland, Eurozone) using a quantitative machine learning model evaluating implied volatility, momentum, and default risk.
Table of Contents
- Introduction
- AI
- Power and Resources
- Longevity
- European Leaders
- Beyond AI: The Power of Humanoids and Automation
- Swiss high quality dividends
- USA
- Switzerland
- Eurozone
- Market & Volatility Snapshot
- Stock selection approach
- What is a reverse convertible?
- Key features of investing in reverse convertibles:
- Risks associated with reverse convertibles
Report data
Figure 1 - Single stock volatility remains relatively high — as of September 28, 2026.
| Metric | Estimate | Context |
|---|---|---|
| Intel 6-month Reverse Convertible Indicative Coupon | 25.5 % p.a. | Strike level at 90.0% of spot, tenor 6 months, pricing includes a 2% p.a. distribution fee. |
| Datadog 6-month Reverse Convertible Indicative Coupon | 23.5 % p.a. | Strike level at 90.0% of spot, tenor 6 months, pricing includes a 2% p.a. distribution fee. |
| BE Semiconductor Industries 6-month Reverse Convertible Indicative Coupon | 18.0 % p.a. | Strike level at 90.0% of spot, EUR denominated, tenor 6 months. |
| STMicroelectronics 6-month Reverse Convertible Indicative Coupon | 17.5 % p.a. | Strike level at 90.0% of spot, EUR denominated, tenor 6 months. |
| NVIDIA 6-month Reverse Convertible Indicative Coupon | 12.5 % p.a. | Strike level at 90.0% of spot, USD denominated, tenor 6 months. |
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