Long-Term Capital Management
The following paper discusses Long-Term Capital Management with reference to wall street traders, random individuals and businesses.
The following paper discusses long-term capital management with reference to wall street traders, random individuals and businesses. The paper examines the rise and fall of bond firm of long-term capital management and assesses the consequences insofar as they can yet be determined of the failure of LTCM on the U.S. and world economy and the implications for the demise of this giant in terms of future investment strategies in hedge funds.
“Salomon Brothers, where he formed its renowned Arbitrage Group in 1977 by hiring academia’s top financial economists. This band of academics developed computer models to deconstruct and ultimately minimize financial risk and became the best and the brainiest bond arbitrage group in the world. A mysterious and shy Midwesterner, Meriwether knitted together this group of Ph.D.-certified arbitrageurs into a seamless financial machine, and they rewarded him with filial devotion and fabulous profits (Shiller 91).”