قالب وردپرس درنا توس
Home / Business / The epic collapse of Archegos inside-The Wall Street Journal

The epic collapse of Archegos inside-The Wall Street Journal



Bill Huang is in trouble.

Last Thursday, the company that managed the wealth of the former hedge fund trader arranged a conference call with executives of some of the largest investment banks in the world. The pressing topic is: due to small bets on major stocks, Mr. Huang’s family business Archegos Capital Management is suffering more and more losses.

Since the betting is partly carried out through so-called full-income swaps, which are paid investments made by banks on behalf of customers, it conceals Huang’s huge investments in multiple companies.

People familiar with the matter said that when Archegos told lenders about the size of their investment portfolio and the small amount of cash they held, they shocked lenders, especially because they are now facing potential losses of billions of dollars.

Now, Wall Street is screening the consequences of the largest single-company bankruptcy since the financial crisis. A person familiar with the matter said that Huang lost about 8 billion US dollars in 1

0 days alone. This is what traders and investors say, and it is one of the fastest losses among the largest losses they have ever seen.


Source link