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(1) Black-Litterman is literally the only useful thing to come out of GS ever. (2) LTCM employed a Nobel winning economist too. Was that "brain trust" the sou
by rmrfstar 6y ago
(1) Black-Litterman is literally the only useful thing to come out of GS ever.
(2) LTCM employed a Nobel winning economist too. Was that "brain trust" the source of PnL, or was it cheap leverage?
Fun fact on LTCM and GS and 1998: according to Lowenstein's account, the GS banker who came to diligence LTCM during the fed-forced bailout was seen furtively reviewing a laptop in a corner. The next day, all the positions recorded in that laptop moved sharply against LTCM... surely this was a coincidence. Great culture they have over there at Vampire Squid, Inc.