Margin Calls Hit Wall Street Like ‘30 LTCMs Out There’ at Once
- Wells Fargo analysts cite memories of 1998 hedge fund collapse
- Swings in bonds, Treasury futures, gold tied to margin demands
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If you’re sensing market players are overcome with shoot-first-ask-questions-later palpitations, you’re not alone. Wall Street says margin calls are at work in this week’s market meltdown, and it’s stirring dark memories.
Wells Fargo & Co. strategists join a growing chorus seeing “accelerating” broker demands for investors to post more collateral to cover losses in their leveraged accounts.