Covered warrant on Swire launched

COVERED warrants were back in fashion yesterday after an almost year-long break.

Peregrine Derivatives launched a 12-month covered call warrant on Swire Pacific A in a play on the stock exchange's plans to launch exchange traded stock options.

Morgan Stanley issued a covered warrant on Cheung Kong amounting to 125 million 10-for-one, two-year at 96 cents with a strike price of $27.45.

In the Peregrine issue size and price was 80 million 10-for-one warrants at $1.28 each, with a strike price of $40.

The premium on the issue is 11.9 per cent and gearing is 3.7 times with implied volatility of 42 per cent.

The expiry of the warrant is on March 28 next year.