VIDEO Archegos Capitals 20 Billion Problem

Downtrend arrow

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? 

Learn more about equity trading opportunities

 
Related tags: Stocks Bank Stocks

Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar