Market insight: What risk managers have learnt since the shock of 1998 By Michael Gordon
Published: July 19 2007 16:54 | Last updated: July 19 2007 16:54
Will the troubles in the US subprime market pass by as a little local difficulty – or will they start a rout across capital markets and bring to an end the great bull run in a broad range of asset classes? That’s the big question faced by those in capital markets right now.
Can history teach us anything on this score? Well, it’s certainly worth looking at the collapse of Long-Term Capital Management in September 1998. The near-demise of this mammoth hedge fund marked a turning-point for credit markets, hitting brokers and banks hard.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.