Leveraged SocGen Product Shorting Singapore Air Now Worth Zero
- Price movement of more than 20% caused slump to zero: SocGen
- Product has been permanently suspended, to be delisted
A Singapore Airlines Ltd. aircraft prepares to land at Ninoy Aquino International Airport in Manila, the Philippines.
Photographer: Geric Cruz/BloombergThis article is for subscribers only.
The value of some of the leveraged short positions in Singapore Airlines Ltd. got wiped out on Wednesday after the carrier’s share price surged due to an adjustment for a rights issue of stock and convertible bonds.
A price movement of more than 20% within 15 minutes led to one of Societe Generale SA’s products shorting the stock -- DLC SG5xShort SIA -- losing all its value after a so-called airbag trigger was activated, the French bank said in a Friday statement. Trading of the instrument has since been permanently suspended.