Breaking news - Apr 6th

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Table of Contents

Credit Suisse takes a $4.7B loss hedge fund Archegos disaster

  • What happened: In March Archegos hedge fund defaulted on margin calls on several global investment banks including Nomura, Goldman Sachs, Credit Suisse and Morgan Stanley
  • Archegos had large positions in ViacomCBS, Baidu and other companies but its use of total return swaps helped hide its high exposure from the banks. The derivative contracts exposed the firm to severe losses when the trades went sour, with fund manager Bill Hwang reportedly losing $8B in just ten days.
  • Credit Suisse was forced to dump a high amount of shares and now expects this to be reflected in the financial reports.
  • Moody’s Investment joined S&P Global Ratings and revised Credit Suisse from negative to stable

ViacomCBS purchases Chilevision from WarnerMedia

  • ViacomCBS global unit ViacomCBS Networks International has agreed to acquire Chilevisión from WarnerMedia.
  • Stocks of WarnerMedia went up while ViacomCBS went down.
  • The deal marks another asset shed by WarnerMedia and an expansion of the VCNI footprint in Latin America.