Your Evening Briefing: The year is only three months old, but already there have been two blowups on Wall Street. First came GameStop, now comes the margin call meltdown https://t.co/2y3rTNi32g
— Bloomberg Markets (@markets) March 31, 2021
$SPX near the top?? pic.twitter.com/Yl41i044mc
— Álvaro Oviedo (@alvoviedo) March 30, 2021
https://twitter.com/MFHoz/status/1376932284847230980
The selloff in Treasuries is gaining steam, with 10-year yields now the highest since January 2020. The Archegos blowup seems fairly contained, but there's concern that rising yields will prompt a wider pullback from risk that'll squeeze other highly leveraged traders. pic.twitter.com/m5fLeUEd2x
— Lisa Abramowicz (@lisaabramowicz1) March 30, 2021
https://twitter.com/gwestr/status/1376711777388359682
SRVIX (Interest Rate Swap Volatility Index) vs MOVE (U.S. interest rate volatility) vs VIX
Nothing to see here… pic.twitter.com/RxHpAHfJwl
— Michael Goodwell (@MichaelGoodwell) March 30, 2021
$ndx in the middle of nowhere but a little more bearish pic.twitter.com/2SnpzaG1hY
— Álvaro Oviedo (@alvoviedo) March 30, 2021
https://twitter.com/coloradotravis/status/1376960790499000324
The asshole class keeps telling us yields are too high – almost back to the 2009 lows.
Bulls worried about the economy overheating should be worried about the stonk market overheating.
That's what's primed to explode. pic.twitter.com/WwfDpU2vi7
— Mac10 (@SuburbanDrone) March 30, 2021
https://twitter.com/NorthmanTrader/status/1376943070911082500
Home Prices Rise at Fastest Pace in 15 Years
Powell wants inflation. He cannot see what is right in front of his nose.
Home prices are up over 11% year-over-year. But the Fed does not consider home prices as inflation.https://t.co/nS793IHEkF
— Mike "Mish" Shedlock (@MishGEA) March 30, 2021
There are about 10,000 hedge funds out there. How many Big Swingin' Huangs are waiting to decimate the system?
— Dave Collum (@DavidBCollum) March 30, 2021
Goldman prime brokerage risk guy at meeting with other prime brokers, after he finds out their positions: pic.twitter.com/CN35E1FpPM
— Ivan the K™ (@IvanTheK) March 30, 2021
Billions in Secretive Derivatives at Center of Hedge Fund Blowup
The forced liquidation of more than $20 billion in holdings linked to Bill Hwang’s investment firm is drawing attention to the covert financial instruments he used to build large stakes in companies.
Much of the leverage used by Hwang’s Archegos Capital Management was provided by banks including Nomura Holdings Inc. and Credit Suisse Group AG through swaps and so-called contracts-for-difference, according to people with direct knowledge of the deals. It means Archegos may never actually have owned most of the underlying securities — if any at all.