News for hackers. Stuff that matters.

A comment on The stockmarket is now run by computers, algorithms and passive managers. Parent comment

Re:The stockmarket is now run by computers, algorithms and p... by Bootvis on Monday October 14, 2019 @06:30AM (#21246697)
Until it's not and the fund manager goes bankrupt...
[ Parent | on HN ]
Re:The stockmarket is now run by computers, algorithms and p... by fauigerzigerk on Monday October 14, 2019 @06:37AM (#21246728)
No, just like with synthetic ETFs, there would be a number of swap counterparties that would have to cover the difference.

If some of them fail (which is very unlikely), the damage would be limited to the difference between the actual portfolio and the S&P 500.

[ Parent | on HN ]