MUFG - Walls Street is tightening credit for hedge funds in Archegos fallout - WSJ

Banks including Credit Suisse ([[CS]] -0.2%), UBS Group ([[UBS]] +2.2%), and Morgan Stanley ([[MS]] +1.3%) are reviewing their divisions that lend to family offices and hedge funds for potential weaknesses in an attempt to avert losses like some of them incurred when Archegos Capital collapsed, the Wall Street Journal reports, citing bankers and hedge-fund managers.As a result, Wall Street banks are requiring stricter lending terms for some of their hedge-fund clients and are taking a closer look at total-return swaps, the WSJ said.Bank losses from the Archegos meltdown have added up to more than $10B, and figure prominently in their Q1 earnings statements of Credit Suisse ($5.5B) ([[CS]] -0.2%), UBS ([[UBS]] +2.2%) ($774M), Nomura Holdings ($2.85B) ([[NMR]] +0.6%), Morgan Stanley ($911M) ([[MS]] +1.3%), and Mitsubishi ($300M) ([[MUFG]] +1.2%).

For further details see:

Walls Street is tightening credit for hedge funds in Archegos fallout - WSJ