RE: Bill Hwang situation I’m told he was spread across handful of PBs who had agreement to work together but they then broke ranks and someone started front-running to stem losses
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Capital requirements were 12-20%, call it 15% on average so could have been 5-6x leveraged with a small cushion. Something like 20b in capital - 80b longs and 40b shorts. Tech / growth tech vs a lot of s&p on short side.
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PBs trying to get back on board with each other to work as group with the remaining blocks - still a lot to unwind.
At lows Friday, some or all of PBs were allegedly sitting on losses in the hundreds of millions, so Hwang is wiped and now banks managing their own losses
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At lows Friday, some or all of PBs were allegedly sitting on losses in the hundreds of millions, so Hwang is wiped and now banks managing their own losses
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Was $2billion-plus blocks in some names offered Friday. Not sure I recall seeing anything like this. Guess he owned 5% of a lot of large cap tech.
Story of leverage, risk mgmt, correlations gone awry.
**could hurt couple banks earnings**
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Story of leverage, risk mgmt, correlations gone awry.
**could hurt couple banks earnings**
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