Connect with us

Hi, what are you looking for?

Stock

Archegos-linked stocks slide as markets eye more unwinding

Stock Markets1 hour ago (Apr 05, 2021 04:05PM ET)

(C) Reuters. FILE PHOTO: 888 7th Ave, a building that reportedly houses Archegos Capital is pictured in New York City

By Sinead Carew and Matt Scuffham

(Reuters) – Archegos Capital Management’s ill-fated bets weighed on ViacomCBS (NASDAQ:VIAC), Discovery (NASDAQ:DISCA) Inc and other media stocks on Monday, and at least one analyst said it remained unclear when banks exposed to the troubled family office would be done selling off their positions in the shares.

Archegos, run by U.S. investor Sung Kook “Bill” Hwang, was caught on the wrong side of debt-laden bets on the stocks of these companies last month, forcing several Wall Street banks that acted as brokers to sell shares in the companies.

Credit Suisse (SIX:CSGN) Group AG, which is expected to record billions of dollars in losses from its exposure to Archegos, is still unwinding its positions, a source familiar with the trades said on Monday. The bank declined to comment. Nomura, which has flagged a possible $2 billion loss, also declined to comment.

Other banks with exposure to Archegos, including Goldman Sachs Group Inc (NYSE:GS), Morgan Stanley (NYSE:MS) and Deutsche Bank AG (NYSE:DB), have unwound their trades, according to sources with direct knowledge of the transactions.

ViacomCBS shares, which traded at a record of $101.97 in March, were down 2.8% at 43.40. Discovery last traded down 1.4% at $42.69 after hitting $78.14 last month. Shares of Tencent Music Entertainment Group (NYSE:TME) and Farfetch (NYSE:FTCH) also slid.

“It’s the uncertainty as to the magnitude of the unwind,” that’s weighing on the shares, said CFRA analyst Tuna Amobi, who has “Buy” ratings on both Discovery and Viacom.

Archegos-linked stocks slide as markets eye more unwinding

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved