Great Finance Firms · Blowups
Long-Term Capital Management
Two Nobel laureates, the best bond traders on Wall Street and 25-to-1 leverage: how LTCM earned 40% a year on 'convergence' trades, lost $4.6 billion in weeks after Russia defaulted in 1998, and was rescued by its own bankers.
Step 1 of 6 · Overview35 min read ·
Key idea
Prereqs: Fixed income math; Black–Scholes; Leverage (Markets). Next: Bridgewater. Sources: Roger Lowenstein's *When Genius Failed* (2000), the President's Working Group report on LTCM (1999).Next: 1. The dream team