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Credit Suisse Group AG said on Monday it could see a “very significant” impact on its first quarter results after a US-based hedge fund defaulted on margin calls made by the Swiss bank.
Credit Suisse and other banks are in the process of exiting the positions in question, the bank said. While he did not quantify the magnitude of the resulting loss, he said it could be significant and important to first quarter results, despite the positive trends outlined in a performance update from the company earlier in March.
Credit Suisse did not mention the source of the expected impact.
The announcement comes after a massive sell-off in the United States last weekend of shares of companies, particularly in the media sector, in which positions were held by Archegos Capital Management, a hedge fund managed by the former Tiger Asia director Bill Hwang.
The bank said it would provide an update on the matter in due course.
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