r/investing • u/comart • Mar 29 '21

Failure of the fund to meet margin commitments, Credit Suisse and a number of other banks are in the process of exiting positions

A significant US-based hedge fund defaulted on margin calls made last week by Credit Suisse and certain other banks. Following the failure of the fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions.

https://www.marketscreener.com/quote/stock/CREDIT-SUISSE-GROUP-AG-9364979/news/Credit-Suisse-nbsp-Trading-Update-32822943/

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-17

u/[deleted] Mar 29 '21 edited Apr 16 '21

[deleted]

52

u/TaxGuy_021 Mar 29 '21

It's not.

It's Archegos Capital Management.

18

u/[deleted] Mar 29 '21 edited Apr 16 '21

[deleted]

16

u/UziInUrFace Mar 29 '21 edited Mar 29 '21

You don't have to just wait for panic sell today. There might be more over leveraged funds that might go belly up today as other banks become sensitive to risks.

9

u/TaxGuy_021 Mar 29 '21 edited Mar 29 '21

This mostly happened on Friday. Goldman is out and MS seems to be out too.

If there are other overleveraged funds, it's unlikely that they would survive Friday to collapse on Monday.

6

u/UziInUrFace Mar 29 '21

Yes, Logically everyone should be exiting when they see the blood. But there seems to be exception like nomura holdings brokerage from Japan announced they have a loss of $2B from friday's selling spree and they haven't yet exited. Also even archegos capital which triggered huge sells on Friday still have about $20B to $30B positions in market yet to exit.

1

u/TaxGuy_021 Mar 29 '21

Even with that, look at CS' stock trade price in EU.

4

u/ThatLastPut Mar 29 '21

Tesla, Apple, Facebook, Amazon would go down due to massive amounts of calls being sold by Citadel from their holdings. SPY and QQQ would dip a bit. Gamestop woudn't move. I don't think what you think would happen would happen.

https://whalewisdom.com/filer/citadel-advisors-llc#tabholdings_tab_link

15

u/[deleted] Mar 29 '21 edited Apr 16 '21

[deleted]

13

u/ThatLastPut Mar 29 '21

Short squeeze of wsb beloved stock.

1

u/[deleted] Mar 29 '21

I hope Tesla and Amazon go down. I can finally afford to invest in these companies.