Hedge Funds, Leverage, and the Lessons of Long-Term Capital Management¶
President's Working Group on Financial Markets. (1999). Hedge Funds, Leverage, and the Lessons of Long-Term Capital Management.
Cited by¶
1 citation across 1 artifact.
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Domain-specific¶
- Funding Fragility
- Hedge funds and prime brokerage — leverage extended by prime brokers and subject to margin calls that can be recalled at the worst moment (LTCM, 1998).
This sourceThe President's Working Group report on hedge funds and LTCM, where the prime-brokerage bundle includes margin credit and mark-to-market collateral and margin calls can impose a very short time frame for resolving liquidity problems.
SupportedVerified against a saved copy of the source
“is typically referred to as prime brokerage and generally includes the following: providing intraday credit to facilitate foreign exchange payments and securities transactions; providing margin credit to finance purchases of equity securities”
- Hedge funds and prime brokerage — leverage extended by prime brokers and subject to margin calls that can be recalled at the worst moment (LTCM, 1998).
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