Long Term Capital Management $($LTCM$)$ was a Hedge Fund founded in $1994$ by John Meriwether, a former bond trader at Salomon Brothers. The main strategy of LTCM was described as Relative Value. "The strategy involved identifying securities which were mispriced relative to one another and seeking to exploit these mispricing." Following a series of economic events, LTCM subsequently collapsed in $1998.$

Required:

Identify and critically discuss the main events which led to the collapse of LTCM$.$