Archegos Is The Red Flag – Part 2

We now know from the SEC legal complaint against Archegos that Bill Hwang parlayed their massive mark-to-market gains into bigger and bigger positions with their prime brokers until in March 2021, as the SEC complaint puts it, “the house of cards collapsed”. This sounds like the classic cautionary tale of a hubristic hedge fund manager, when instead it should be seen as a red flag for systemic risk.

The prime . . .

To read this article, please log in or sign up to one of our subscription packages.