How axed dividends left SocGen in a €200 million hole

Collapse in equity trading revenues prompts rethink of autocall hedging

societe-generale-offices

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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