Haghani argues systemic risk in 1998 came from crowded trades, not LTCM size

What was said

"The systemic problems of LTCM had to do with the fact that uh turned out that everybody else had on similar positions to LTCM. Goldman had position sizes that were four times bigger than LTCM's positions in certain of the big positions."

Haghani says LTCM’s crisis became systemic because other large firms held similar relative-value positions, leaving the market vulnerable to a broad ‘risk-off’ unwind. He claims Goldman Sachs had exposures several times larger than LTCM in some positions, arguing the episode cannot be explained by hedge fund leverage alone.