Roger Lowenstein's narrative history of Long-Term Capital Management — the rise and collapse of the hedge fund run by Nobel laureates and Wall Street legends.
The definitive LTCM account: Lowenstein's narrative makes accessible the complex mechanics of convergence trading, the role of leverage in amplifying small mispricings into catastrophic risk, and the hubris of believing mathematical models could tame market volatility. Essential reading for understanding model risk, leverage, and the systemic fragility that arises when sophisticated players all use similar strategies. The Fed's orchestration of the bailout is documented as a precedent that shaped the 2008 crisis response.
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