Saturday, 30 August 2014
Last updated 1 day ago
Feb 3 2010 | 7:49pm ET
In its continuing quest to understand the derivatives at the heart of the financial crisis, the Securities and Exchange Commission plans to pick the brain of the man who profited most from them.
The regulator has sent a request for information to Paulson & Co., the $30 billion New York-based hedge fund run by John Paulson, the Financial Times reports. Paulson made his name and fortune three years ago when he bet against the subprime mortgage market and won big, earning $15 billion for his investors.
According to the New York Post, Paulson is cooperating with the SEC. He is not the target of the probe, which instead is focused on the banks that created and marketed collateralized debt obligations.
Paulson earned triple-digit returns betting against the housing market in 2007, with his flagship Credit Opportunity Fund soaring nearly 600%. According to the FT, Paulson pushed banks to create synthetic CDOs for him to short, promising to buy the lowest-rated tranches of the CDOs. He also reportedly sought to specifically include mortgages from parts of the U.S. where he believed the mortgage market was particularly vulnerable.
In December, the SEC subpoenaed most of the top banks on Wall Street, including Bank of America Merrill Lynch, Citigroup, Goldman Sachs and Morgan Stanley, among others, seeking information about their sale and marketing of CDOs.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...