Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6787701341000142848
How To Build Loans Portfolio of $100 Billion & Loose $20 Billion in 2 Days:
#Archegos: Comparisons to #LTCM: https://lnkd.in/eJP9Bvw :
When investors around the world learned that a company called Archegos had defaulted on loans used to build a staggering $100 billion portfolio, the first question was, “Who on earth is #BillHwang ?” The sudden implosion of Hwang’s Archegos Capital Management in late March is one of the most spectacular failures in modern financial history: No individual has lost so much money so quickly. At its peak, Hwang’s wealth briefly eclipsed $30 billion. It’s also a peculiar one. Unlike the Wall Street stars and Nobel laureates who ran Long-Term Capital Management, which famously blew up in 1998, Hwang was largely unknown outside a small circle. By design or by accident, Archegos never showed up in the #regulatory #filings that disclose major shareholders of public stocks. Hwang used #swaps, a type of #derivative that gives an #investor exposure to the gains or losses in an underlying asset without owning it directly. This concealed both his identity and the size of his positions. Even the firms that financed his investments couldn’t see the big picture.
Global Risk Management Network LLC: AIMLExchange™: C4I-Cyber™: AI-Quant-Cyber-Crypto-Quantum Leader
