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A single client has cost Nomura $2bINTL

A single client has cost Nomura $2b

Japan’s biggest brokerage and investment bank, Nomura, was forced to cancel its upcoming chunky bond sale after losing $2b!

The grim loss reportedly happened after the Archegos Capital sell-off that triggered major trading losses for key lenders such as Nomura and Credit Suisse. The culprit was a US hedge fund client that defaulted on margin calls made by Credit Suisse and other banks (all are now in the process of exiting their Archegos positions).

Nomura’s shares fell as much as 16% — their biggest drop in over a decade! Meanwhile, Switzerland’s Credit Suisse dropped by 13.5%.

why it matters
This is quite troublesome news for a handful of Wall Street players, given the drop in Nomura and Credit Suisse's shares. Hopefully this will be a one-off trading disaster that won’t impact the equity markets badly in the long-term.