US investment firm Archegos causes stock market jolts
Turbulence in global finance as two banks saw their prices collapse.
Credit Suisse is down nearly 15%, while the Japanese establishment Nomura closed the session down more than 16% in Tokyo.
Neither Credit Suisse nor Nomura gave the name of this expensive fund (illustrative image).
ERIC PIERMONT AFP / Archives
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Turbulence in global finance while two banks have seen their prices collapse: Credit Suisse is down nearly 15%, while the Japanese establishment Nomura had closed the session down more than 16% in Tokyo.
At issue: their warning about the impact for them of recent transactions by an American investment fund.
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Neither Credit Suisse nor Nomura gave the name of this expensive fund.
But anonymous sources from several news agencies point the finger at Archegos Capital Management.
The investment company was shaken up last week, according to the
Financial Times
, by the sharp drop in ViacomCBS, an American media group in which Archegos held a lot of shares.
To cover the depreciation of this investment, an Archegos broker then requested additional funds and this prompted him to liquidate some of his positions.
The fund has shed blocks of shares totaling more than $ 20 billion.
These massive sales concern in particular the Chinese Baidu and Tencent, the online discount retailer Vipshop Holding;
American companies such as the conglomerates ViacomCBS and Discovery are also concerned.
Three days later, this Monday, March 29, Nomura therefore warned that transactions linked to a customer could result in a significant loss for one of its subsidiaries, perhaps $ 2 billion according to a first estimate.
Credit Suisse does not quantify the losses linked to the default on the fund's margin calls, but predicts a substantial impact on its first quarter results.
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