LTCM and Archegos: leverage you cannot see
See how leverage turns small losses into near-failure, and how exposure split across lenders hides the total.
Module 25 of 26, When it goes wrong: real blowups. Lesson 1 of 6, about 16 minutes.
The takeaway
Hidden leverage is dangerous because multiple lenders cannot see the total; a fall that looks small in percent can erase capital when leverage is high.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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