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A Fund Behind Astronomical Losses.

Authors :
Ng., Serena
Mollenkamp, Carrick
Source :
Wall Street Journal - Eastern Edition. 1/14/2008, Vol. 251 Issue 11, pC1-C2. 2p.
Publication Year :
2008

Abstract

The article discusses a hedge fund owned by trader Alec Litowitz and his Magnetar Capital. Litowitz allowed the creation of collateralized debt obligations (CDOs), which are large packages of subprime-mortgage securities and derivatives grouped together and sold in chunks to global investors. Magnetar sold $30 billion worth of these packages in 2006-07. The author states that many of these packages got liquidated causing major losses on Wall Street.

Details

Language :
English
ISSN :
00999660
Volume :
251
Issue :
11
Database :
Academic Search Index
Journal :
Wall Street Journal - Eastern Edition
Publication Type :
News
Accession number :
28344283