The Swiss bank is reportedly still in the process of offloading large blocks of shares on behalf of Archegos, a hedge fund-style client wreaking havoc on Wall Street.
Zurich-based Credit Suisse placed large blocks of Discovery Inc and iQIYI Inc shares on the market after trading hours yesterday, according to «CNBC», citing sources. The the trades were part of the ongoing unwinding of the bank’s Archegos positions.
This follows similar moves by the Swiss bank to unload large blocks of Archegos-linked shares in ViacomCBS, Vipshop Holdings Ltd and Farfetch Ltd last week.
The move is part of a 4.4 billion Swiss franc ($4.7 billion) hit that Credit Suisse has flagged due to Archegos, tipping it to a quarterly loss. Together with Greensill, the problem led Credit Suisse to renege on most of its shareholder payout, halt stock buybacks, and two top executives to step down.
Trade Details
Separately, «Reuters» reported that the bank placed on the market 19 million class A Discovery shares; 22 million class C shares of Discovery; and 35 million U.S.-listed iQIYI shares.
Based on the reported price ranges, Credit Suisse attempted to unload around $1.88 billion to $2.07 billion of such shares. As the bank with reportedly the second-largest exposure to the top 10 stocks traded by Archegos at $10 billion, the block trades on Tuesday represent around one-fifth of the total exposure.
