Companies linked to the Archegos Capital Management meltdown at the end of last month were struck by a new wave of volatility on Tuesday after Credit Suisse initiated a block trade worth around $2.3 billion in an attempt to limit further losses.
Stocks including ViacomCBS, Discovery, and Tencent all whipsawed, and were down in premarket trading before recovering through the morning.
Previous block trades were initiated by Goldman Sachs and Morgan Stanley. Japanese firm Nomura Holdings said it could suffer a possible loss of around $2 billion as a result of the fund’s collapse.
In March, the hedge fund used borrowed money to make large bets on some stocks, until Wall Street banks forced the firm to sell over $20 billion worth of its shares after failing to meet a margin call.