JP Morgan sells $350m exchangeable into Dufry to hedge derivatives

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By Jon Hay
05 Jan 2018

JP Morgan launched on Thursday January 4 the first European equity-linked bond of the year: a $350m bond exchangeable into shares of Dufry, the Swiss duty free retailer. The deal is designed to hedge derivatives positions the bank already held on Dufry shares.

The deal was done after a wall-crossing of some investors on Wednesday. A press release was issued on Thursday afternoon.

Market participants were curious to know what JP Morgan’s purpose was with the deal. Speculation centred on collar financing that JP Morgan is understood to have provided to ...

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