Thus far, however, the repricing of credit risk does not appear to have imposed significant strains on the financial system. Limiting potential systemic risks from hedge funds Since the LTCM episode, policymakers have continued to discuss the best approach to limiting potential systemic risks from the activities of hedge funds.
In the immediate aftermath of the episode, the PWG studied the implications for financial stability and published its conclusions in April 1999 in a report entitled "Hedge Funds, Leverage, and the Lessons of Long-Term Capital Management."