It is 11:33 PM eastern US time on Friday, 4 April 2025 and I just got the word: Margin Calls began this morning.
Hedge funds have been hit with the biggest margin calls since Covid shut down huge parts of the global economy in 2020, after Donald Trump’s tariffs triggered a powerful rout in global financial markets.
Wall Street banks have asked their hedge fund clients to pony-up more money as security for their loans because the value of their holdings had fallen as stock values dropped, according to three people familiar with the matter.
Several big banks issued the largest margin calls to their clients since the beginning of the pandemic in early 2020. I am told these Margin Calls are “much larger than during the 2008 Great Financial Crisis.”
The margin calls underscore the intense turbulence in global markets on Thursday and Friday as Trump’s tariffs announcement…
