Nicholas Dunbar, Author: “Inventing Money”
Alpha Exchange
00:00
The Mystique of LTCM
The allure of LTCM and being able to get a piece of it was so significant for firms like UBS they didn't just want to be a lender they wanted to be an investor as well. Once you have this portfolio relative value trades, there are a lot of them There's the equity volatility trade which is kind of like a delta hedging strategy or trading the terms structure of volatility between short dated options and long-days options. You're doing things like pairs trading in US stocks or like fuel listed companiesyou're doing things with swap spreads They did that with sterling they had this big Eurozone trades as well as we discussed. We're supposed to be Europe Chinese walls but
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