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$17.5 Million In Revenue And $5.4 Billion In Losses: Archegos Was A 300x-Levered Time Bomb For Credit Suisse

$17.5 Million In Revenue And $5.4 Billion In Losses: Archegos Was A 300x-Levered Time Bomb For Credit Suisse A bank’s prime brokerage unit is supposed to be a safe, reliable and predictable generator of revenue, resulting from modest-margin transactions with a bank’s hedge fund client base. It’s safe because the bank’s risk managers scour the bank’s exposure to various […]

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The $2.3 Quadrilliion Global Timebomb

THE $2.3 QUADRILLION GLOBAL TIMEBOMB Credit Suisse is hours from collapse and the consequences could be a systemic failure of the financial system. Disappointingly, my dream last night stopped there. So unfortunately I didn’t experience what actually happened. As I warned in last week’s article on Archegos and Credit Suisse, investment banks have created a timebomb […]

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THIS is What a Margin Call Looks Like: the Consequences of Stock Market Mania

THIS is What a Margin Call Looks Like: the Consequences of Stock Market Mania Financial World A couple of weeks ago, we reported on various examples of stock market mania that have exploded in 2021. Now it’s time to examine a major event that could be a clear harbinger for “the big one” to come. It starts […]

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Rehypothecated Leverage: How Archegos Built A $100 Billion Portfolio Out Of Thin Air… And Then Blew Up

Rehypothecated Leverage: How Archegos Built A $100 Billion Portfolio Out Of Thin Air… And Then Blew Up One week after the biggest, and most spectacular hedge fund collapse since LTCM, we now have an (almost) clear picture of how Bill Hwang’s Archegos family office managed to single-handedly make a boring media stock the best performing […]

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Archegos Implosion is a Sign of Massive Stock Market Leverage that Stays Hidden until it Blows Up and Hits the Banks

Archegos Implosion is a Sign of Massive Stock Market Leverage that Stays Hidden until it Blows Up and Hits the Banks Banks, as prime brokers and counterparties to the hedge fund, are eating multi-billion-dollar losses as they try to get out of these secretive stock derivative positions. The implosion of an undisclosed hedge fund, now […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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