Archegos Capital meltdown lifts lid on longstanding risk management flaws

The exposure Archegos had to Viacom and other stocks really does open a Pandora's box worth of issues surrounding the use of total return swaps in today's global equity markets, says Joseph Cordahi. Viacom, the stock that Bill Hwang's fund was most exposed to, is not exactly a mainstream technology stock like a Microsoft or Amazon. What the downfall of Archegos has shown is that investment managers have to, at the very least, have some insight into what is behind complex derivatives if they are to harbour any hope of calculating the potential risk underpinning bigger and more liquid s...