We have had 3 recent LTCM like blowups:
March 2020: Relative Value Interest Rate Swaps
January 2021: Melvin Capital
March 2021: Archegos
*Common denominator? Massive Leverage.
Join @andrewrsorkin and @Convertbond tomorrow on @SquawkCNBC at 6:45am for the backstory.
March 2020: Relative Value Interest Rate Swaps
January 2021: Melvin Capital
March 2021: Archegos
*Common denominator? Massive Leverage.
Join @andrewrsorkin and @Convertbond tomorrow on @SquawkCNBC at 6:45am for the backstory.
Nomura $2B hit on tape
Nomura is a small prime broker, CS is a big one, MS / GS as well, CS must have the biggest hit relative to Nomura at $2B - we have to assume $8B to $12B hit across them all?
CDS was telling us something Friday.. Credit leads equities..
Nomura is a small prime broker, CS is a big one, MS / GS as well, CS must have the biggest hit relative to Nomura at $2B - we have to assume $8B to $12B hit across them all?
CDS was telling us something Friday.. Credit leads equities..
1. No one knows how big he was or how levered.
2. Have to assume goldman went first and protected itself. MS not far behind.— but with bigger exposure could have a loss. Those that acted slower (nomura, cs) probably left holding the bag???
(3)
2. Have to assume goldman went first and protected itself. MS not far behind.— but with bigger exposure could have a loss. Those that acted slower (nomura, cs) probably left holding the bag???
(3)
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