The demise of Archegos Capital Management, a New York-based family investment office overseen by Bill Hwang at the end of March, will almost certainly inflict significant losses on a number of global investment banks that provided it with prime brokerage facilities.

But its overall effect on global financial markets appears to have been relatively limited, at least so far, although Credit Suisse has reported losses of $4.7 billion directly linked to its exposure.

Unlike the 1998 demise of Long Term Capital Management (LTCM), a big New York-based hedge fund management firm, the demise of Archegos has not precipitated an ...