Hedge fund meltdown is a (another) warning to Wall Street

Tonight: Global banks are, once again, learning about the dangers of excessive leverage; the Great Stuck may be unstuck, but the Suez saga isn’t over; and the housing market has truly gone bonkers. Let’s get into it.HEDGE FUND FAILA little-known hedge fund has caused widespread chaos on Wall Street. And it’s a scary reminder of the dangers posed by extreme leverage, secret derivatives and rock-bottom interest rates, my colleague Matt Egan writes.WHAT HAPPENEDArchegos Capital, a hedge fund few people had heard of, used borrowed money to build massive positions that propped up media stocks including ViacomCBS and Discovery. It did so using complicated financial instruments called swaps (If you’re

→ Continue reading at CNN - Business News

More from author

Related posts

Advertisment

Latest posts

Nike sues the maker of Lil Nas X 'Satan Shoes' for trademark infringement

In a lawsuit filed Monday, Nike accuses MSCHF Product Studio, Inc. of trademark infringement over the designer's 666 pairs of modified Nike sneakers made...

This is how CatMan or Category Management can boost the sales of your business

Also known as Category Management, it is a product placement strategy to achieve successful retail sales. Learn how to use it to benefit...

Hedge fund meltdown is a (another) warning to Wall Street

Tonight: Global banks are, once again, learning about the dangers of excessive leverage; the Great Stuck may be unstuck, but the Suez saga isn't...