Archegos

[chip*]

Just read up on the Archegos losses (see articles below), and I am sure there will be "lessons learnt" by the Banks and US regulators to tighten up the disclosure requirements. Most retail investors will probably place blame with the greedy Banks & poor regulation, but this Archegos story clearly demonstrate the issue concerning concentration risk on your investment i.e. it's all hunky dory when the bet is going your way, but also how SPECTACULARLY bad when it go against you!
Happy reading

https://www.bloomberg.com/news/features/2021-04-08...

https://www.wsj.com/articles/what-is-archegos-and-...

[bitchstewie]

Thanks the Bloomberg piece is fascinating.

I'd seen references to this when markets had that recent bout of relative volatility in the US but hadn't appreciated the extent of it.

I'm a normal investor who just holds normal boring investment trusts and when I see some of the instruments out there I just think fk that

[xeny]

Isn't there the small matter of 5x leverage in there?

edit, I'd also suspect few of us are in a position where having to unwind our positions is likely to materially move an asset price (I think I've done it once in a not terribly liquid IT).

Edited by xeny on Monday 19th April 15:38