The Justa & Lars Honors Bob Brinker Investment Club Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joseph G. who wrote (1223)	9/27/1998 10:45:00 PM
From: Kirk ©	Read Replies (2) of 15132

JG- I have saved 4 articles here: suite101.com quoting one of the articles at the above url: "Despite all the talk of wierd derivatives, this is not a derivative loss or even a Russian default problem. Yes those contributed but neither were major factors. The really big torpedos that hit LTC were old fashioned leveraged bond trading. They were long mortgage back securities and short US treasuries. As credit spreads widened they got hammered. They had similar positions in Europe where they were long European bonds and short US treasuries against them. The $100 billion lending from banks was repo on securities. LTC would have gotten hammered just as bad if they had never done a single derivative. " The above quote I posted on Friday and seems to agree with what BB said. It seems there are several versions of what went wrong with LT CM. I would be interested in a trustworthy news source that explains just how they got so much leverage and how they placed their bets. I'd also like to know how many other hedge fund positions are in danger of collapsing.....

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next