日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Policies

Billionaire takes?Wall Street on wild ride

By HENG WEILI in New York | China Daily | Updated: 2021-04-13 06:54
Share
Share - WeChat
A view of the New York Stock Exchange. BRENDAN MCDERMID/FILE PHOTO/REUTERS

Losses huge as Bill Hwang's 'family office' defaults on margin calls

Like the stocks he's invested in, Bill Hwang's Wall Street career has had its ups and downs.

Most recently, there was a down-a big one.

Last month, Archegos Capital Management in New York, the "family office" run by Hwang, defaulted on margin calls that led to billions of dollars of losses for Japanese bank Nomura and other companies including Credit Suisse, along with an estimated $20 billion loss for Archegos.

Wall Street banks such as Goldman Sachs and Morgan Stanley managed to bail out in time, limiting losses.

Hwang, the son of a Christian minister and a naturalized immigrant from South Korea, imbues his financial activities with his faith. He borrowed from Wall Street banks to build enormous holdings in a handful of United States stocks and US-listed Chinese stocks, including Baidu and Tencent Music.

By mid-March, he was the heavyweight behind $20 billion of shares in ViacomCBS, effectively making him the media company's largest institutional shareholder, The New York Times reported.

However, the newspaper said few knew about his total risk exposure, because the shares were mostly held through complex financial instruments called derivatives, created by banks.

The derivatives included so-called total return swaps, a financial product that allows traders to make massive bets with relatively little underlying collateral. Derivatives allow investors to bet on movements of stock prices without owning the underlying securities.

Jim Collins, CEO of Excelsior Capital Partners, said: "At the close of every trading day, Archegos would settle its swap accounts. If the total value of all positions in the account rose, the bank in question would pay Archegos cash. If the value fell, Archegos would have to put up more collateral or, in industry parlance, post margin."

After ViacomCBS shares plunged late last month, Hwang's lenders demanded their money, known as a margin call-when a bank asks a client to put up more collateral if a trade partly funded with borrowed money has fallen sharply in value. If the client cannot afford to do that, the lender sells the securities to try to recoup the funds it is owed.

When Archegos could not pay, the lenders seized the assets (the stocks) and sold them, leading to one of the biggest implosions of an investment company since the 2008 financial crisis. Hwang's personal wealth largely disappeared.

On Wednesday, CNBC reported that Morgan Stanley sold about $5 billion of Archegos' stocks on March 25, the night before a "fire sale" hit rivals.

Goldman Sachs unloaded $10 billion in Archegos holdings the next day. The New York investment bank sold three blocks of shares on March 29, a source familiar with the sale process said. It sold $6.6 billion of shares in Baidu, Tencent Music Entertainment Group and Vipshop Holdings before the US market opened.

This was followed by the sale of $1.7 billion of shares in ViacomCBS and $2.3 billion of shares in Discovery, Farfetch, iQIYI and GSX Techedu later that day.

On April 6, Credit Suisse said it would take a $4.7 billion loss from dealings with Archegos, prompting it to overhaul the leadership of its investment bank and risk divisions.

1 2 3 4 Next   >>|
Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 啪啪乐视频 | 精品视频麻豆入口 | 91精品国产91久久久久久 | 亚洲九九香蕉 | 亚洲欧美精品综合中文字幕 | 丁香久久 | 特级毛片8级毛片免费观看 亚洲精品不卡 | 黄瓜av| 国产精品精品 | 日本高清视频在线播放 | 欧美日韩视频在线播放 | 国产高清视频a在线大全 | 性夜影院爽黄a免费视频 | 欧美高清视频一区 | 午夜成人在线视频 | 国产福利视屏 | 日本三级香港三级乳网址 | 综合精品 | 国产成人精品久久二区二区91 | 久久久久久综合 | 成人a视频在线观看 | 久草手机视频在线 | 99色精品 | 韩国美女激情视频一区二区 | 久草资源 | 91.com在线观看 | 欧美在线 | 亚洲 | 国产午夜精品理论片 | 国产高清免费 | 91成人精品| 很黄很色又爽很黄很色又爽 | 成人 精品| 欧美性一区二区三区 | 伊人2222 | 欧美另类性视频 | 国产成人精品综合 | 欧美日韩在线视频观看 | 超97在线观看精品国产 | 久草久热| 另类视频综合 | 九九香蕉视频 |