[VIDEO] Archegos Capital’s $20 Billion Problem
Joe Perry March 30, 2021 2:18 AM
How many more funds are out there with excessively high risk taking and margin?
Last week, Archegos Capital was forced to liquidate up to $20 billion worth of holdings in media stocks and Chinese ADRs as the firm could not meet its margin calls.
Discovery and ViacomCBS were 2 of the largest hit stocks which were liquidated last week. Archegos prime brokers suffered as well, as they were the ones who offered the firm such outstanding leverage.
But one has to wonder…is this the end of the liquidation with for Archegos? Was the gold selling earlier today part of this?
And with the world swimming in central bank cash and stocks at such elevated levels, how many more funds are out there with excessively high risk taking and margin? If stock market’s correct, do we see more of this from overleveraged funds?
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