Търсенето даде 1 резултат

NYSE (daily chat)

#Citadel, a hated hedge fund, has been shorting companies like AMC/GME and others. However, in January, these companies received massive support from the Reddit community buying these stocks in a big way and driving up the stock price. Hedge funds like Citadel suffered massive losses in the hundreds of millions in a gamma squeeze. The company is said to even have taken action against it asking the broker to suspend trading. During a testimony Citadel CEO Griffin admitted the short positions were now closed. A search of Bloomberg however revealed that Citadel not only have failed to cover the short positions from January, but those have actually grown exponentially.

Citadel can use Chinese commercial paper and bonds as collateral and receive 100% credit on par value for them. Once Evergrande is declared bankrupt and has a D status, the hedge funds can no longer use the Chinese paper and bonds as collateral. As a result, they are unable to meet multi-billion dollar margin requirements and must sell shares to cover margins or close short positions. In doing so, hedge funds must buy AMC/GME at any price. Even if the market collapses, AMC and GME shares will soar. Apes ... you are going to be filthy rich.

The scale of failure to deliver's accumulation is criminal and could pose a systemic risk to the global financial system. If the long positions in blue chips held by these funds are liquidated to meet their margin calls or buybacks, it could spell disaster for the market itself. If this short squeeze occurs, it could lead to the largest transfer of wealth in the history of the market and the liquidation of a number of hedge funds collectively worth trillions.

As you can see, it has begun with Citadel. Is the company looking for a bailout like it did in 2008?

Because that's how they survived 2008 ... with a bailout. That's the goal now again. Like other hedge funds, the firm found it nearly impossible to borrow money to fund its positions - particularly in convertible bond arbitrage, a market Citadel had rushed into during the summer when convertible bond prices were dirt cheap. It is a strategy in which investors typically buy a company's convertible bonds while shorting the company's common stock. It is a bet that the bond will outperform the stock. If these bonds go up due to inflation and lack of liquidity due to the impact of Evergrande, the whole stinking ship will capsize. Add to that Quadruple Witching Day, the USD debt ceiling and all the things we have been talking about for months!

This is the second domino to fall on the road to financial collapse after Evergrande.