Shortstack
17th April 2010, 11:32 AM
Sometimes a little background can mean all the difference between understanding an issue and not understanding an issue. Many investment professionals on Wall Street who are not familiar with this complex CDO scheme are learning about it via reading this article.
This in depth, long form journalistic piece explains the mechanics of this trade, which was "invented" by a Chicago hedge fund named "Magnetar" Goldman/Paulson later used the "magnetar trade" leading to the Friday's SEC indictment:
http://www.propublica.org/feature/al...housing-bubble
Edit - link corrected:
http://www.propublica.org/feature/all-the-magnetar-trade-how-one-hedge-fund-helped-keep-the-housing-bubble
This in depth, long form journalistic piece explains the mechanics of this trade, which was "invented" by a Chicago hedge fund named "Magnetar" Goldman/Paulson later used the "magnetar trade" leading to the Friday's SEC indictment:
http://www.propublica.org/feature/al...housing-bubble
Edit - link corrected:
http://www.propublica.org/feature/all-the-magnetar-trade-how-one-hedge-fund-helped-keep-the-housing-bubble