Credit Suisse in a $4.7 Billion Bind Thanks to Hwang’s Leveraged Bets Even the world’s biggest banks have difficulty keeping track of risks involved with financial innovations like CFDs.
Last updated on April 06, 2021
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
After “The Big Short” movie, followed by Netflix and HBO Max announcements for two movies on the GameStop saga, another contender enters the fray. “Bill” Hwang is likely to be immortalized as the most devastating trader in banking history.
Are Bank Bailout Lessons Already Forgotten?
Archegos Bikini Atolls - LewRockwell
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Secret weapons have no ability to deter cataclysmic violence.
The reply from the Russian ambassador is one for the ages, “It was to be announced at the Party Congress on Monday.”
Remember this when we consider the curious question of the demise of Archegos Capital.
Because sometimes I watch something unfold and I have zero opinion on it whatsoever. The Suez blockage was one of them. I had to will myself to care beyond the obvious, “this is bad” reaction. The more I think about it, however, the more significant it becomes (more on that in future posts).
On the other hand, the minute I read a single article about the vaporization of Archegos capital on Moday morning I smelled a rat, or least something vaguely rat-like. And what immediately popped into my head was this thing is important, but not for the reasons anyone will admit to on CNBC or in the financial press.
by Tyler Durden
Wednesday, Mar 31, 2021 - 09:44 PM
Speaking to CNBC this morning, bitcoin billionaire and crytpocurrency preacher Mike Novogratz turned the table on those who mock bitcoin for being too volatile or for being an instrument of unhinged speculation, and instead pointed to Bill Hwang and his family office Archegos, pointing out the obvious: it wasn t bitcoin that nearly led to another systemic event - after all everyone is aware of the inherent risks of bitcoin - but rather a handful of relatively boring and low-beta media names that caused billions in losses for both Hwang and his various Prime Brokers. The culprit:
Dynamic Beta Investments This story is available exclusively to Insider subscribers. Become an Insider and start reading now.
Andrew Beer is the founder of Dynamic Beta Investments, which manages over $400 million in assets.
Beer explains how leverage has made the Archegos blow-up the Frankenstein version of GameStop.
He also shares how investors can capture hedge fund alpha without taking on too much risk.
Nearly a week since the implosion of Archegos first spilled into public view, former Tiger Cub trader Bill Hwang s family office and its slew of prime brokers are still in the eye of the storm. This story, as we ve heard it so far, is clearly missing some pieces, Andrew Beer, managing member of Dynamic Beta Investments, said in an interview.
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