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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?


To: robnhood who wrote (211)9/27/1998 4:35:00 PM
From: Henry Volquardsen  Read Replies (1) | Respond to of 2794
 
Russel,

I was thinking of just that as I posted that comment. In this case, however, the excess leverage doesn't effect the equities markets directly. The leverage was in the bond market and mostly in spread positions. So where the unwinding of leverage in '29 caused a meltdown in equities this time we will see the impact more in the bond markets, perhaps a melt up in credit spreads that LTC was short.

Henry