![]() Hwang, who founded Archegos and ran Tiger Asia from 2001 to 2012, renamed it Archegos Capital and made it a family office, according to a page capture of the fund’s website. Viacom was also downgraded by Wells Fargo on Friday.Ī person at Archegos who answered the phone on Saturday declined to comment. Investors and analysts cited blocks of Viacom and Discovery shares being put in the market on Friday for likely exacerbating the decline in those stocks. Baidu was trading slightly lower in Hong Kong at the open. Shares in ViacomCBS and Discovery each tumbled around 27% on Friday, while U.S.-listed shares of China-based Baidu and Tencent Music plunged during the week, dropping as much as 33.5% and 48.5%, respectively, from Tuesday’s closing levels. Nasdaq 100 futures and S&P 500 Futures were both down 0.5% in early European trade as the widening fallout of Archegos’ liquidation became clearer. Investors were nervous about whether the full extent of Archegos’ apparent wipeout has been realised or whether there was more selling to come. If the client can’t afford to do that, the lender will sell the securities to try to recoup what it is owed. The Swiss National Bank declined to comment.Ī margin call is when a bank asks a client to put up more collateral if a trade partly funded with borrowed money has fallen sharply in value. The Swiss regulator also said several banks and locations internationally were involved. Switzerland’s financial regulator said on Monday it was aware of the international hedge fund case and in touch with Credit Suisse about it. UBS had no immediate comment on their stock prices or exposure to Archegos.ĭeutsche’s Archegos exposure was a fraction of what others have, a source familiar with the matter said, adding that the German bank had not incurred any losses and was in the process of managing its position. Nomura shares closed down 16.3%, a record one-day drop, while Credit Suisse shares were down 14%, their biggest fall in a year.ĭeutsche Bank was down 5% while UBS was 3.8% lower. client while Credit Suisse said a default on margin calls by a U.S.-based fund could be “highly significant and material” to its first-quarter results.Ĭredit Suisse said that a fund had “defaulted on margin calls” to it and other banks, meaning they were now in the process of exiting these positions. Nomura said it faced a possible $2 billion loss due to transactions with a U.S. Losses at Archegos Capital Management, run by former Tiger Asia manager Bill Hwang, had triggered a fire sale of stocks on Friday, a source familiar with the matter said. ![]() hedge fund, named by sources as Archegos Capital, defaulted on margin calls, putting investors on edge about who else had been caught out. TOKYO/ZURICH (Reuters) -Nomura and Credit Suisse warned on Monday they were facing big losses after a U.S. ![]()
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