SoftBank winding down derivatives after investor backlash: Bloomberg News
Reuters
Published Dec 01, 2020 23:36
Updated Dec 02, 2020 02:54
(Reuters) - SoftBank Group Corp is winding down its derivatives holdings following an investor backlash, Bloomberg News reported on Wednesday, citing unidentified sources.
About 90% of the options, which accompanied SoftBank shifting part of its cash reserves into listed tech stocks, will be closed out by the end of December, Bloomberg said. (https://bloom.bg/2JBIuT6)
The investments by SB Northstar, which is headed by Abu Dhabi-based Akshay Naheta, caused consternation in markets, leading to SoftBank being dubbed the "Nasdaq Whale" in some media reports.
Chief Executive Officer Masayoshi Son last month described the derivatives as a "rounding error" when compared to the group's broader portfolio.
The fair value of SoftBank's options and futures positions was $2.7 billion at the end of September, compared to $16.8 billion in tech stocks such as Amazon.com Inc (NASDAQ:AMZN).
"(The impact of a wind down) depends on how much you believe SoftBank was the culprit behind all the option volatility and the whale-type moves," Andrew Brenner, New York-based head of international fixed income at NatAlliance Securities, wrote in a note.
The company's shares, which have gained 53% this year, were flat in Tokyo trading. A SoftBank spokeswoman declined to comment on the report.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.