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Long-Term Capital Management L.P. (LTCM) was a highly leveraged hedge fund. In 1998, it received a $3.6 billion bailout from a group of 14 banks, in a deal brokered and put together by the Federal Reserve Bank of New York. LTCM was founded in 1994 by John Meriwether, the former vice-chairman and head of bond trading at Salomon Brothers.
Dec 19, 2023 · Long-Term Capital Management (LTCM) was a large hedge fund led by Nobel Prize-winning economists and renowned Wall Street traders. LTCM was profitable in its heyday and by the spring of 1998,...
Jan 27, 2022 · Long-Term Capital Management was a massive hedge fund with $126 billion in assets. It almost collapsed in late 1998. If it had, that would have set off a global financial crisis.
Jul 10, 2014 · The demise of the firm, Long-Term Capital Management (LTCM), was swift and sudden. In less than one year, LTCM had lost $4.4 billion of its $4.7 billion in capital.
Nov 22, 2013 · On September 23, 1998, a group of fourteen banks and brokerage firms invested $3.6 billion in Long-Term Capital Management L.P. (LTCM) to prevent the firm’s imminent collapse. The capital infusion forestalled a fire sale of LTCM assets into already turbulent markets and instead allowed for an orderly liquidation of the hedge fund’s holdings.
Feb 1, 2000 · In the fall of 1998, the losses and credit exposure of one particular hedge fund, Long-Term Capital Management (LTCM), were so far-reaching that the U.S. Federal Reserve Board (Fed) felt compelled to organize LTCM's rescue.
At the eleventh hour, fearing that the financial system of the world was in peril, the Federal Reserve Bank hastily summoned Wall Street's leading banks to underwrite a bailout. Roger Lowenstein, the bestselling author of Buffett, captures Long-Term's roller-coaster ride in gripping detail.
- Roger Lowenstein
Sep 10, 2018 · Significant failures in risk management by LTCM and, more important, by many of its large and sophisticated counterparties, were highlighted by the LTCM episode as were gaps in regulating certain financial practices and products such as over-the-counter (“OTC”) derivatives.
Sep 25, 2023 · The Long-Term Capital Management collapse—which led to an unprecedented rescue by the Fed—was 25 years ago. Heard on the Street revisited that crisis with a three-part series that wrapped...
Dec 1, 2000 · Long-Term Capital's leverage was closer to 1 to 30 as early as 1995. A partner at LTCM described their technique as scooping up loose nickels created when prices in financial markets got slightly out of balance. However, it was only through leverage that such small bets created huge returns.
