When regs bite back
Meyrick Chapman is the principal of Hedge Analytics and a former portfolio manager at Elliott Management.
In a cruel way it is amusing that the recent LDI shambles rebounded so badly on now ex-prime minister Liz Truss and then-chancellor Kwasi Kwarteng.
After all, in the wake of 2008 the main aim of regulators was to ensure the political order would never again face the risk and responsibility of an overleveraged financial system. It seems this cunning plan has backfired. The LDI explosion shows the post-crisis financial architecture has important flaws.
This story originally appeared on: Financial Times - Author:Meyrick Chapman
