Additional Detail from Magnetar Response
Magnetar says it was “net long” on its own CDOs:
At the end of September, 2007, the majority of the notional value of Magnetar’s hedges referenced CDOs in which Magnetar had no long investment. The remaining hedges referenced debt tranches of CDOs in which Magnetar held a long equity position.
Notably, focusing solely on the group of CDOs in which Magnetar was the initial purchaser of the equity, Magnetar had a net long notional position. To put this into perspective, Magnetar would earn materially more money if these CDOs in aggregate performed well than if these CDOs performed poorly.”
ProPublica asked Magnetar to clarify whether the fund had been “net long” its own CDOs before the end of September 2007 or after as well as how it defined the term. Magnetar declined to respond.
Get Updates
Our Hottest Stories
- Donations to Scott Walker Flagged as Potential Fraud
- In Race For Better Cell Service, Men Who Climb Towers Pay With Their Lives
- Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds
- Pardon Attorney Torpedoes Plea for Presidential Mercy
- Patient Died at New York VA Hospital After Alarm Was Ignored
- Finding Oscar: Massacre, Memory and Justice in Guatemala
- Introducing the ProPublica Patient Harm Community on Facebook
- Built for a Simpler Era, OSHA Struggles When Tower Climbers Die
- Got Student Loans? Share Your Documents With Us
- Remember Stuxnet? Why the U.S. is Still Vulnerable
- Donations to Scott Walker Flagged as Potential Fraud
- Pardon Attorney Torpedoes Plea for Presidential Mercy
- In Race For Better Cell Service, Men Who Climb Towers Pay With Their Lives
- Air Force Pilots Balk at Flying the World’s Most Expensive Fighter Jet
- Patient Died at New York VA Hospital After Alarm Was Ignored
- Watchdog Group Calls for Probe of Lobbyists Behind Congressional Trip to Taiwan
- Billion Dollar Bait & Switch: States Divert Foreclosure Deal Funds
- Finding Oscar: Massacre, Memory and Justice in Guatemala
- Broadcasters Sue to...Block Transparency
- Happy Graduation! Here's The Best, Most Depressing Journalism on Student Debt
