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Mohamed El-Erian warns Archegos shock risks ‘slow moving’ contagion

The shock may have knock-on effects such as banks tightening lending rules

Mohamed El-Erian, Allianz’s chief economic adviser
Mohamed El-Erian, Allianz’s chief economic adviser Photo: Patrick T. Fallon/Getty Images

The shock to stock markets of hedge fund Archegos Capital Management’s reported $20bn fire sale of assets looks to be contained, but the fiasco could have broader fallout, said Allianz’s chief economic adviser Mohamed El-Erian.

Archegos, the family office of hedge fund manager Bill Hwang, is reportedly behind a $20bn sale of assets on 26 March, which has sent tremors through markets.

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