Do Hedge Funds Threaten Financial Stability?
Could the failure of a single hedge fund, or group of hedge funds, threaten U.S. financial stability? It is an important question, and one that is difficult to answer. Take for instance the rapid decline of Long-Term Capital Management (LTCM) in 1998, which threatened to take down many of LTCM’s creditors and derivatives counterparties. To… Read More »