BofA gives investors chance to bet on Alibaba performance

Bank of America, one of the few large banks that isn’t working on this week’s initial public offering of Alibaba Group Holding Ltd., has found another way to make a buck on the deal.

Bloomberg News reports that the bank is giving investors a chance to bet on Alibaba’s performance by offering them a product that uses the e-commerce company’s largest shareholder, SoftBank Corp., as a basis for approximating Alibaba’s valuation.

It strips out the main listed businesses that SoftBank owns - Sprint Corp. and Yahoo Japan Corp. - through short positions.

Bank of America has found takers as investors scramble for ways to profit from the biggest Internet debut since Facebook Inc., and the trades have earned the lender millions of dollars of commissions, people with knowledge of the matter said. Demand for Alibaba’s $21.1 billion IPO is strong enough that the company plans to stop taking orders earlier than scheduled.

Hit the link below to access the complete Bloomberg News article:

BofA Profits From Alibaba Even After IPO Snub

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