In 1998, this situation brought the giant hedge fund, Long Term Capital Management (LTCM), to its knees and required a Fed-arranged bailout to save many large banks from substantial losses.

The potential basis trade blowup reminds us of the Long-Term Capital Management (LTCM) bailout in 1998. The following quote is from our article- From LTCM to 1966: LTCM specialized in bond arbitrage.

He wrote the book on Long-Term Capital Management, and he says, in the beginning, this fund was verging on mystical. LOWENSTEIN: You know, they seemed to have a formula.

It's the story of Long Term Capital Management.The story begins back in the 90s. A group of math nerds figured out how to use a mathematical model to identify opportunities in the market, tiny ...

Long Term Capital Management (LTCM), once a prestigious hedge fund managing over $126 billion, collapsed in 1998 after its complex, highly leveraged strategies failed due to unexpected events like ...

The collapse of Long-Term Capital Management (1998) Long-Term Capital Management (LTCM), a hedge fund founded by Nobel laureates and Wall Street veterans, seemed unstoppable—until it wasn’t.

Michael Barr, vice chair for supervision at the Federal Reserve, said in a speech Tuesday that banks may need to hold margin to reduce nonbank counterparty risks, citing the failure of Long-Term ...

When Long Term Capital Management (LTCM) collapsed in the early 1990s, the investment community was stunned because its management was highly regarded and its strategies were outrageously successful.

Victor was a founding partner at the hedge fund Long-Term Capital Management (LTCM). In 1998, at age 36, he took a nine-figure hit when LTCM was undone by that decade’s second financial crisis.

The U.S. is the only major banking power that has yet to implement "Basel III endgame" standards. This regulatory regime seeks to increase capital requirements for large banks as well as smaller banks ...