Global banks such as Nomura and Credit Suisse as fearing large losses after US hedge fund Archegos Capital, defaulted on margin calls. Experts are pegging this value at over $6 billion.
It started to unravel of Friday as Goldman Sachs sold $10 billion worth of shares in block trades after losses at the hedge fund triggered a fire sale of stocks.
Archegos was unable to meet banks' calls for more collateral to secure equity swap trades they had partly financed. After those positions fell sharply in value, lenders sold big blocks of securities to recoup what they were owed, the sources said.