The liquidation of the Bear Stearns credit enhanced leverage fund was the first high-profile run on an illiquid structured product fund—the managers could not liquidate as the market froze. Brokers and banks began liquidating their inventory of risk assets in competition with leveraged asset managers.
I wrote a note to sales that day saying risk managers around the world will not sleep tonight because the deleveraging had begun. Lehman failed over a year later. In the fall, markets ran higher, especially oil and emerging markets.
We sold 10 percent of our equities that very day.