Trending Content - Sales and Trading Forum
Career Resources
WSO Free Modeling Series - Now Open Through
November 30, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
I don't work at BS but you're an idiot. Sure it's embarrassing for them (even though they only had $40 mil invested) but this was far from the big market mover today considering the news that ML was going to seize their assets has been out for a few days already. And the fact the funds haven't really collapsed yet.
you are an idiot...because actually look at the dow graph and what happened when this anonymous person said that ML would not auction the collateral...and actually today the auction was going to happen. so shut up...
To pinpoint just one factor for an entire days worth of trading is not the smartest move. The biggest reason why this is a (relatively) big market mover is because if the securities the hf holds are auctioned off for cheap, other banks and hfs will have to adjust their marks on similar products (the stuff those guys hold are not liquid). So every bank has an incentive to not do anything stupid and hurt themselves.
There are bigger reasons for market movement (the carry for one). I would attribute the advance in the asia markets yesterday for the action today. If you want a good graph check out dbv vs. spy. If you use carry as a barometer for cheap credit you can see that is a far more important mover of markets. I can see how the bear trade affects sentiments though.
As for bear...don't see any reason to feel embarrassed. The HF probably does as simply put they blew up. Its never something to be proud of but the end economic (and for that matter reputation) damage to Bear is minimal.
Yes its important but everyone on the street knew ML wasn't going to be doing a firehouse sale (rumor has it that they did so in order to get BS to cough up cash to the HF but thats rumor). If ML did do it they would face backlash from both within and outside the firm. No one wants to end this party. ML had been threatening to do so for a while (which killermike does point out although his execution was poor) so the market knew where they stood on this issue (and why they were pursuing it). Thats why I doubt that was a big market mover.
In terms of fresh rumor, word is that another whale has blown up and news will hit the wires soon.
Et aperiam eum consequatur et. Molestiae nobis quis illo necessitatibus.
Ut voluptas aliquam non quia pariatur et. Esse eligendi dolorem quia ut quia. Quos consequatur sit qui voluptatem occaecati. Cupiditate eius ut qui asperiores.
Recusandae qui vel ad et. Qui veritatis tempore eos laborum molestias voluptates.
Reprehenderit soluta qui architecto deserunt. Et enim saepe est numquam aliquid qui dolorum. Voluptas quo inventore repellendus ut voluptates in quisquam. Ex sint ut quia porro.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...