Market violence to make blocks painful for forced sellers

Sam Kerr

March 17, 2020 01:30 pm

(200316) -- NEW YORK, March 16, 2020 (Xinhua) -- Traders work at the New York Stock Exchange in New York, the United States, March 16, 2020. U.S. equities plunged on Monday with the Dow closing down about 3,000 points, as fresh stimulus measures from the Federal Reserve failed to calm markets amid intensifying virus fears. The Dow Jones Industrial Average cratered 2,997.10 points, or 12.93 percent, to 20,188.52. The S&P 500 fell 324.89 points, or 11.98 percent, to 2,386.13. The Nasdaq Composite Index was down 970.28 points, or 12.32 percent, to 6,904.59. (Photo by Michael Nagle/Xinhua) | Michael Nagle/Xinhua News Agency/PA Images

The crash in share prices as the coronavirus pandemic has gathered pace is soon likely going to force some sellers to execute equity block trades to cover loans secured against stock, or just to access capital quickly. But these sellers are going to have to stomach heavy discounts to get the liquidity required to execute trades, as one company proved on Monday night.

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Topics

Coronavirus Equity ABBs-Block Trades UK Europe EMEA

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Sam Kerr