Covered warrant: Rising risks

The CW market last week recorded further declines in both the number of gainers and liquidity. This reflected negative market sentiment and suggested that short-term risks were on the rise. According to valuations based on the Black-Scholes model, several CWs are currently undervalued, with CVHM2504, CVIC2503, and CVRE2504 being the most notable examples. In contrast, CVHM2509, CHPG2517, and CVHM2511 were assessed to be overvalued, based on a total sample of 192 listed CWs.