The Demons of Archegos

The meltdown of the Wall Street hedge fund appears to be an isolated event, but leverage and debt are piling up 

Yan Barcelo 28 April, 2021 | 4:28AM
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Person walking a tightrope

At the end of March, Archegos Capital managed the unprecedented feat of burning up US$ 20 billion in only two days. How did it happen? And what market risks remain?

The event, reminiscent of the meltdown in 1998 of Long-Term Capital Management that lost US$ 4.6 billion over four months, sent shivers through capital markets and had many asking: is this a portent of worse to come?

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About Author

Yan Barcelo  is a veteran financial and economic journalist with more than 30 years of experience, writing for many publications in Toronto and in Montreal, including CPA MagazineLes Affaires and Commerce.

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