For Credit Suisse, the Archegos disaster is not over yet

The damage caused by Archegos is not over yet for Credit Suisse, and we saw it just yesterday.

After the close, major analysts noted that Credit Suisse is selling its shares associated with the Hedge Fund disaster at an incredibly slow rate, despite having already accumulated losses uncertain in the exact amount, but huge in the total value, such as to result in heavy cuts in the bonuses and even personnel to save the shack. In this case, Discovery Class A and C shares and IQIY shares were sold; Chinese technology company.

In particular, the following were sold:

DISC A: 19 million shares at $ 38.40 – 39.60
DISC O: 22 million shares at $ 32.35 – 33.75
IQ: 35 million shares at $ 15.85-16.35

In the instinctive response, all three stocks dropped by at least 4% after hours, managing to worsen an already bad result. After all, when you wait for the worst moment to sell, the results can only be these. After three weeks, Credit Suisse still hasn't divested all shares linked to Archegos, and this is, frankly, amazing and worrying.

So either Credit Suisse is incredibly slow, or it likes to accumulate losses with no apparent sense, or something else is wrong. One hypothesis is that the Swiss bank, which is becoming the weak point of the European credit system, hedged positions and speculations on TRS similar to those of Archegos on another small, but devastating, investment firm that followed a similar tactic. 'American. Then it would explain these late sales.

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The article For Credit Suisse the Archegos disaster is not finished yet comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/per-credit-suisse-il-disastro-archegos-non-e-ancora-finito/ on Wed, 14 Apr 2021 07:00:25 +0000.