[ad_1]
His attack on Gautam Adani’s conglomerate has kept global stock markets in tension and made Nate Anderson famous. The young short seller is also making a big Swiss bank sweaty with his actions.
The Hindenburg exploded while trying to land in New Jersey in 1937, and the image of the burning airship has been a symbol of man-made disaster ever since.
Some 86 years later, the Hindenburg name is on everyone’s lips again and Asian stock markets are going crazy.Indian conglomerate since attack by US hedge fund Hindenburg Research Gautam Adani (photo below) lost over $70 billion in value in just three days.
(Image: Adani Enterprises)
Financial professionals vs. conglomerates
This is the work of a 38-year-old American who grew up in Connecticut and worked as a lifeguard in Israel as a student. Nathan “Nate” Anderson (photo below) is considered a Wall Street novice, having just launched short-selling firm Hindenburg in 2017. According to media reports, the team consists of just five of him.
But this David has made a name for himself as a giant killer in recent months. Targets include his Twitter in the hands of the former richest man in the world. Elon MuskNow the son of a nurse and teacher is infuriating Asia’s richest man. Adani responded to Hindenburg’s accusations listed on page 106, prompting an angry page 413 reply, viewing the activists’ attack as an attack on India.
(Image: Twitter)
huge scam
The sale of Adani shares continued on Monday as counter-arguments to the accusations were unhelpful. Not only is it bad luck, it’s also bad timing. On Friday, the conglomerate will issue new shares to raise about $2.4 billion. Actions are less about money than gestures. With the capital increase, Adani hopes to refute Hindenburg’s accusations.
Still, it’s one of Anderson’s milder allegations against Adani. Short sellers have accused the conglomerate of manipulating its balance sheets and stock prices for decades and committing “the greatest fraud in the history of the economy.”
attractive target
With this declaration of war, Hindenburg shook investors around the world and shook the Indian stock market. Of particular concern is the group’s outstanding debt, estimated at over $25 billion, which could unnerve bankers at UBS and Credit Suisse.
In his response, Mr. Adani explained that his firm is a customer of two of the largest Swiss banks (Figure below). This may also apply to yourself. Asia’s richest man is likely to get a lot of courtship from his UBS and CS, which control his banking privates in the region.
A wavering Adani empire could affect Swiss institutions. There is a threat of write-downs of securities on the balance sheet and, in the worst case, loan securities. Price corrections to date are deep enough that margin calls on leveraged assets are plausible. The latter mechanism has repeatedly proven to be a thorn in the side of Swiss private banks doing business with the wealthy in Asia.
middle east rescue
According to a «Financial Times» report, UBS and Credit Suisse were not yet mentioned in Friday’s expected capital increase (behind the paywall). Jupiter Asset Management, French bank BNP Paribas, Societe Generale, Goldman Sachs and others have already been allocated fixed shares.
According to reports, a savior from the Middle East could come to the aid of the Adani group. His IHC, the largest publicly traded company in the Emirate of Abu Dhabi, invested about $2 billion in the conglomerate last year.
The emirate is now expected to raise more money to defend these positions. Adani Group’s investment partners include Qatar’s sovereign wealth fund QIA, according to the company’s letter. QIA is a major shareholder of Credit Suisse.
deal with other giants
Anderson will likely have to deal with other giants. Americans who specialize in tracking fraud and corporate fraud probably won’t be deterred. He has already been rewarded for his persistence, not just financially. For example, in the summer of 2021, US authorities indicted the founder of US electric truck maker Nikola after Hindenberg accused the company of fixing prices.
[ad_2]
Source link
