PivotalPath CEO Jon Caplis recently spoke with Bloomberg to share some thoughts on hedge fund leverage and what could be done to prevent another Archegos meltdown.
As Jon noted, “before you rewrite all the regulatory statutes, you can make one small change that would be effective. If you merely treat total-return swaps in the same way hedge funds are already disclosing equity holdings, you would drastically mitigate an Archegos-like fallout from happening again.”