Which 1998 crisis followed Russia's default and the collapse of the hedge fund Long-Term Capital Management?

The Russian financial crisis followed Russia's 1998 sovereign default and the collapse of Long-Term Capital Management.

Russia devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic ruble debt in August 1998. Falling oil prices, weak tax collection, political uncertainty, and heavy reliance on short-term government borrowing had made the financial system vulnerable.

The shock spread through international markets. Long-Term Capital Management, a highly leveraged U.S. hedge fund, suffered major losses on trades designed to exploit small price differences. The Federal Reserve Bank of New York helped organize a private-sector rescue in September 1998 to reduce the risk of disorderly liquidation.

This crisis is sometimes mislabeled simply as the Asian financial crisis, which began earlier and centered on East and Southeast Asia. The Russian episode had its own debt, currency, and banking dynamics.