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LONDON, March 15 (Reuters) – Short sellers were on Tuesday as fears of a Silicon Valley Bank collapse stoked contagion and sent shares lower, according to S&P Global Market Intelligence. Europe 15.7 against banks billion they accumulated a low position worth more than a dollar.
Major hedge funds including Marshall Wace and Odey Asset Management Europe added to short positions against its banks, regulatory filings seen by Reuters and data from Breakout Point showed.
Short selling involves borrowing money from a broker to sell them, expecting to buy them back at a lower price for a profit.
Odey Asset Management and Marshall Wace declined to comment.
State filings from Austria, Italy, Sweden, England, Spain and Poland, analyzed by Breakout Point, showed Marshall Wace’s most disclosed short positions against banks. Banks include BAWAG (BAWG.VI), FinecoBank (FBK.MI), Handelsbanken (SHBa.ST), CaixaBank (CABK.MC), NatWest Group (NWG.L) and PKO Bank Polski (PKO.WA) is included.
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Handelsbanken, Mediobanca (MDBI.MI), BNP Paribas (BNPP.PA), Credit Suisse (CSGN.S), Close Brothers (CBRO.L), Deutsche Bank ( DBKGn.DE ) was among the financial firms that ended higher on Tuesday. to short sellers, according to S&P Global Market Intelligence credit ratio of shares on.
113 lenders monitored by researchers 10-It saw an average increase of 5% in shares on loan between March 14.
The data did not include a drop in Credit Suisse shares on Wednesday, which plunged 30% at one point after its top shareholder said it could not inject more capital into the bank for regulatory reasons.
Traders with short positions in Credit Suisse could have potentially made as much as $238.6 million for the month and $192.4 million for the year, based on market prices, S3 Partners research showed.
BNP Paribas shares fell as much as 12% on Wednesday, losing 9% before recovering, Deutsche Bank shares fell by almost 9%.
During the week until Wednesday Europe about 120 of the value of their banks’ shares billion euro (126 billion dollars) was deleted.
“It’s causing panic with little thought to fundamentals,” said Jerome Legras, head of research at Axiom Alternative Investments, when asked if there was a short-term relationship between banks.
Confusion erupted after Silicon Valley Bank was forced to sell its bond portfolio at a loss to meet demands from customers seeking to withdraw their funds, sparking fears of a liquidity crisis at other financial institutions.
($1 = 0.9501 euro)
Reporting by Nell Mackenzie; Edited by Amanda Cooper and Mark Potter
Our standards: Thomson Reuters Trust Principles.
2023-03-15 21:53:21
Source – reuters
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