Nomura and Credit Suisse warn of losses amid hedge fund fire sale

Firms suffer shockwaves from Friday sell-off

Mike Sheen
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Credit Suisse and Nomura suffered share price falls of 13.2% and 16.3% respectively
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Credit Suisse and Nomura suffered share price falls of 13.2% and 16.3% respectively

Nomura and Credit Suisse have warned investors that they may be subject to "significant" losses as a result of a margin call default suffered by a US-based hedge fund last week.

The banks said in separate market updates on Monday (29 March) that the cost of unwinding positions is set to have a material impact on their respective upcoming quarterly results. A case of caveat emptor? Managers approach with caution as SPAC surge welcomed to UK market It follows a wave of selling pressure on Friday (26 March) after ex-Tiger Management analyst Bill Hwang's family office was forced to liquidate positions, with US media stocks and some Chinese shares taking the heaviest hit. Nomura told investors this morning that "an event occurred that could subject one ...

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