Shares in Credit Suisse pushed higher today, clawing back some of their losses sparked by the collapse of US hedge fund Archegos Capital Management.
The bank lost almost a fifth of its value after defaults on margin calls by Archegos, a family office run by billionaire Bill Hwang, prompted a fire sale by banks.
Credit Suisse closed up 2.6 per cent today, though it is still down 18.5 per cent for the week.
Alongside Japan’s Nomura, Credit Suisse has borne the brunt of the losses due to their exposure to the collapsed hedge fund, though it is still unclear which other lenders may be affected.
Japanese finance firm Mizuho could face a loss of 10bn yen ($90m) from deals with Archegos, local media reported today.
Nomura has said it expects to book a $2bn loss from the saga, while Credit Suisse is yet to reveal the extent of the damage.
Sources told Reuters that Credit Suisse would detail the impact in the coming days, with losses potentially as high as $5bn. The bank has declined to comment on the figure.
The fire sale is the latest setback for Switzerland’s second largest bank, which has also been hit by its exposure to Greensill.
The lender has lost almost a quarter of its value in the last month alone as a result.