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Archegos debacle reveals hidden threat of banks’ profitable swaps enterprise

Chart of a total total return swap

The Archegos Capital debacle exposed the hidden risks of the lucrative but opaque equity derivatives business, through which banks enable hedge funds to place oversized bets on stocks and related assets. The sour bets made by Bill Hwang’s family office have resulted in significant losses at Credit Suisse and Nomura, underscoring how these tools can