How axed dividends left SocGen in a €200 million hole
Collapse in equity trading revenues prompts rethink of autocall hedging
Societe Generale is reviewing its hedging strategies for autocallables after losses linked to the structured products decimated its equity trading division.
The French bank reported a €326 million ($358 million) loss in the first quarter, with equity trading revenue dropping 99% year-on-year to just €9 million.
SG’s structured products book took a €200 million hit as companies held back pre-announced dividends last month – an unprecedented move that structured products issuers, including SG
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