# kaal:claim:3405660-009

**Claim.** Before its collapse LTCM held roughly $4.8 billion in capital while controlling $160 billion in stocks and bonds, with derivatives of a notional value of $1 trillion.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- position as of the period immediately before the 1998 crash

**Source quote.**

> LTCM had $4.8 billion in capital prior to the crash and controlled $160 billion in stocks and bonds. In addition, derivatives of the fund had a notional value of $1 trillion.

**From.** Kaal, *Indirect Regulation of Hedge Funds* (2019), II. The Need for Hedge Fund Regulation, page 6

**Cite as.** Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660

**Verify.** sha256 of source PDF `cf507b1833071765bc13a5605f38c2591582eca85f40869e38b6ff075c04d29d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202019%20-%20Indirect%20Regulation%20of%20Hedge%20Funds.pdf

**Topics.** empirical-evidence, systemic-risk, risk-and-incentives

**Keywords.** ltcm, leverage, empirical-data, systemic-risk

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