Shares of banks and other financial institutions rose, but not by as much as the broad market, as a down-tick in Treasury yields and fears about the fallout of a hedge fund collapse weighed on the sector.
The yield on the 10-year Treasury ticked down to 1.718%, retracing some of its recent gains.
Credit Suisse shares remained under pressure, rising only slightly after Bloomberg News reported that the Swiss bank was considering ousting its risk management chief. One money manager said the Archegos Capital Management blowup could be indicative of more risk lurking in a stock market that's run up fast.
"When you have volatile underlyings like that, it kind of pulls the curtain back," said Jeffrey Pavlik, managing member at hedge-fund firm Pavlik Capital Management. "It becomes a cascading thing. To say that [Bill Hwang] is the only guy doing this; I think that would be naive." Mr. Pavlik compared institutional investors' leveraged holdings of stock recently to the leveraged holdings of housing debt in 2008.
"You end up with levered positions in things that, theoretically, don't go down ... all these things were tied to housing prices," said Mr. Pavlik. "Once housing prices started going down, we realized there was a ton of leverage going the wrong way."
Fred Ehrsam and Fred Wilson are listed as independent directors of cryptocurrency exchange Coinbase Global, even though they have close ties to the company, The Wall Street Journal reported.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-05-21 1710ET
