8004 Exam Dumps : PRM Certification - Exam IV: Case Studies; Standards: Governance, Best Practices and Ethics

Both relied on a star manger, supposedly in a low risk business.

Both losses grew over time, but were not discovered by management until too late.

Both traded in illiquid and obscure markets that were easy to manipulate.

Both losses were eventually exposed by massive margin calls.

Many of the banks in the rescue consortium were among LTCM's counterparties

Some of the banks in the rescue consortium were LTCM investors

Untimely unwinding of some LTCM positions would lead to large market fluctuations and possible turmoil

The consortium wanted to keep this out of the regulators' eyes

Gives an accurate result in most cases

Captures portfolio effects but not tenor differences

Can easily reflect the impact of netting

Overstates exposure in most cases