ProPublica

Journalism in the Public Interest

Cancel

The Anatomy of the Magnetar Trade

The Anatomy of the Magnetar Trade

The hedge fund helped create mortgage-based securities, pushed for risky things to go inside them and then bet against the investments, resulting in billions in losses for investors and ultimately making the financial crisis worse.

Note: Many CDOs were made up not of actual mortgages but side bets on them.

Return to the story.

Graphic by Irwin Chen, Redub LLC