I’m sure that will be remembered. Bear Stearns might still be around today if they had participated in the bailout of LTCM.
As well as his main business (holding leveraged shitcos) chad trader Bill Hwang also ran the greatest tail hedge strategy the world has ever seen -- convincing his brokers to give him a free put on his exact portfolio which has paid out to the tune of multiple billions of $
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Can I has one?
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Could you go more into detail on his tail risk strategy? I understand his short book included many indices that were not correlated to his long book (long duration growth). How did this sophisticated investor make such a material error (picking wrong shorts)
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It is a joke, I mean that as soon as his account balance went below $0 his brokers were on the hook for the rest of the losses
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