A massive margin call affected a little-known family office last Friday, incurring billions of dollars in losses for certain banks involved and jolted the overall volatility of the broader market. Archegos Capital Management’s leveraged bets in ViacomCBS blew up and ignited a whopping $20 billion wave of forced liquidations at a slew of Wall Street banks, some of which face losses that could be “highly significant.” Who is behind Archegos? Archegos Capital Management is a family investment vehicle founded by former ...
This sounds a lot like setting up multiple margin retail accounts and go in like the greatest newbie of all time with max leverage till he gets margin called on all fronts..... what the f....?!?
First this guy should have known that his positioning is sold to 3rd parties paying for such information and as soon as probably the bigger sharks got a clear picture about what was brewing they simply had to contact Viacom management that it would be a good time to make a capital increase at such stock levels and they could immediately offer everything required to so within a very short period of time knowing this will make sure the shit hits the fan for Hwang's massive overleveraged bets and they will margin call him correctly to oblivion.
That's a side effect of central bank policies of the last 14 years..... the leverage in the system went banana because typically those who put on large leverage bets have been the heros and made huge amounts of money out of thin air because of global central banke stock market support. So this might be only the canary in the coal mine.... there should be a lot more Hwang's outthere after 14 years low or even negative yields. The market would clean them out, but the question is will they let the market do it's job or not.