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November 21, 2023
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Investing in a Greener Future

With increasing global awareness about the climate crisis and a growing shift towards sustainable practices, Renewable Energy companies are at the forefront of this transformation. As governments around the world continue to implement policies to reduce carbon emissions, the demand for clean energy sources increases.

By investing in this thematic, investors not only support the transition to a greener future but also position themselves to capitalise on an industry in expansion. It's an opportunity to be part of the solution while reaping the rewards of a smart investment strategy.

Renewable Energy sources, such as wind, solar, and hydroelectric power, now supply about 21% of all U.S. electricity, according to the U.S. Energy Information Administration. This industry has quadrupled its capacity over the past decade, driven by falling costs of solar panels, wind turbines, and energy storage batteries. As governments propose legislation to accelerate decarbonisation, companies are signing power purchase agreements (PPAs) for clean energy. Investing in some of the top-tier Renewable Energy stocks, like NextEra Energy (NEE US), SolarEdge Technologies (SEDG US) and First Solar (FSLR US), brings the investors to an advantageous position in this context. NextEra leads with around $120 billion market cap, while the other companies offer interesting growth prospects.

Why should you consider Renewable Energy stocks? Besides making sense economically, they align with clients’ values of social responsibility and contribute to their portfolio diversification. The International Energy Agency calculates that for every dollar invested in fossil fuels, about 1.7 dollars are now going to clean energy and the investment in solar energy is set to overtake the amount going into oil production for the first time. According to BloombergNEF, “global new investment in renewable energy skyrocketed to $358 billion in the first six months of 2023”. Given this scenario, clean energy companies stand to benefit significantly.

Structured Products Ideas to play this view:

Both products have the same exposure to Renewable Energy companies and the possibility of having 100% capital protected at maturity, provided by One Star feature:

  1. 1Y BRC Autocalable (One Star) - Yield enhancement with guaranteed coupon, autocall trigger at 100% and 40% downside cushion (60% European capital barrier).
  2. 4Y Athena Step-Down (One Star) - Yield enhancement with conditional snowball coupon paid upon autocall, trigger descending and a noticeable level of protection on the downside (50% European capital barrier).

BRC Autocallable One Star| Athena Step-Down One Star| Product Snapshot
For informational purposes only. Not investment advice.

By the Research Team

Insights
November 21, 2023
Investing in a Greener Future

With increasing global awareness about the climate crisis and a growing shift towards sustainable practices, Renewable Energy companies are at the forefront of this transformation. As governments around the world continue to implement policies to reduce carbon emissions, the demand for clean energy sources increases.

By investing in this thematic, investors not only support the transition to a greener future but also position themselves to capitalise on an industry in expansion. It's an opportunity to be part of the solution while reaping the rewards of a smart investment strategy.

Renewable Energy sources, such as wind, solar, and hydroelectric power, now supply about 21% of all U.S. electricity, according to the U.S. Energy Information Administration. This industry has quadrupled its capacity over the past decade, driven by falling costs of solar panels, wind turbines, and energy storage batteries. As governments propose legislation to accelerate decarbonisation, companies are signing power purchase agreements (PPAs) for clean energy. Investing in some of the top-tier Renewable Energy stocks, like NextEra Energy (NEE US), SolarEdge Technologies (SEDG US) and First Solar (FSLR US), brings the investors to an advantageous position in this context. NextEra leads with around $120 billion market cap, while the other companies offer interesting growth prospects.

Why should you consider Renewable Energy stocks? Besides making sense economically, they align with clients’ values of social responsibility and contribute to their portfolio diversification. The International Energy Agency calculates that for every dollar invested in fossil fuels, about 1.7 dollars are now going to clean energy and the investment in solar energy is set to overtake the amount going into oil production for the first time. According to BloombergNEF, “global new investment in renewable energy skyrocketed to $358 billion in the first six months of 2023”. Given this scenario, clean energy companies stand to benefit significantly.

Structured Products Ideas to play this view:

Both products have the same exposure to Renewable Energy companies and the possibility of having 100% capital protected at maturity, provided by One Star feature:

  1. 1Y BRC Autocalable (One Star) - Yield enhancement with guaranteed coupon, autocall trigger at 100% and 40% downside cushion (60% European capital barrier).
  2. 4Y Athena Step-Down (One Star) - Yield enhancement with conditional snowball coupon paid upon autocall, trigger descending and a noticeable level of protection on the downside (50% European capital barrier).

BRC Autocallable One Star| Athena Step-Down One Star| Product Snapshot
For informational purposes only. Not investment advice.

By the Research Team

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