Correct. Credit Suisse was "counterparty" to an estimated 50% of the derivatives created to short GME and other "meme stonks". When counterparty goes bust, it makes it very difficult to continue creating derivatives, AND even if shorts are right, they may not be able to get paid now.
Couterparty = the one selling the "insurance" for payout when GME stock price goes down (per hedge fund manipulation via creation of fake shares they then sell short). Insurance policies cancelled? Unknown, but certainly disrupted.
CS held a lot of the swaps used to short GME and now they've been absorbed by UBS.
Correct. Credit Suisse was "counterparty" to an estimated 50% of the derivatives created to short GME and other "meme stonks". When counterparty goes bust, it makes it very difficult to continue creating derivatives, AND even if shorts are right, they may not be able to get paid now.
Couterparty = the one selling the "insurance" for payout when GME stock price goes down (per hedge fund manipulation via creation of fake shares they then sell short). Insurance policies cancelled? Unknown, but certainly disrupted.
Also bbby and others.