Nicols echoed Schwenk’s remarks, saying that all the signs of underlying vulnerability were present but that people were not paying attention. “We saw that in the space with people who were thought to be trusted players,” Nicols said. “Three Arrows Capital was a darling of the hedge fund space… though we saw things happening that were cause for question, a lot of people chose to ignore them. So if you did due diligence and took a responsible approach, you could have seen the issues bubbling up – but because prices were going up, people wanted in.”
