Hedge Fund Failure Causes Catastrophe - Market Loses Billions of Dollars! - Kakiforex | Forex markets for the smart money. Hedge Fund Failure Causes Catastrophe - Market Loses Billions of Dollars! Hedge Fund Failure Causes Catastrophe - Market Loses Billions of Dollars!

April 1, 2021

Hedge Fund Failure Causes Catastrophe - Market Loses Billions of Dollars!

 Shares in Nomura and Credit plunged further on Wednesday with $ 9 billion worth of their market value wiped out this week due to the impact of the failure of Archegos Capital's hedge fund.


Shares of Credit Suisse fell 4% on Wednesday, making this week’s decline to nearly 20%. This adds to the pressure and makes it difficult for Credit Suisse to buy back shares and pay dividends.



The bank’s market capitalization has shrunk by five billion Swiss francs since Friday to 25.57 billion Swiss francs ($ 27.12 billion). Sources estimated Credit Suisse's losses could amount to $ 5 billion but the bank declined to comment.


On the other hand, the Nomura company lost $ 2 billion as a result of the Archegos failure. Market capitalization fell from 2.3 trillion yen ($ 20.81 billion) to 1.88 trillion yen since Friday based on Refinitiv data.


The rating agency added further pressure by downgrading Nomura's rating to 'negative'. Market players specifically stock investors are beginning to take more precautionary measures in the face of the impact of hedge fund failures.