SEC Looks At Mizuho-Magnetar CDO

Sep 15 2011 | 8:53pm ET

The U.S. Securities and Exchange Commission has launched an investigation into yet another collateralized debt obligation involving hedge fund Magnetar Capital.

The regulator is looking into several CDOs created by Mizuho Financial Group, including one called Tigris, The Wall Street Journal reports. Magnetar allegedly had a hand in crafting that CDO.

As with previous probes into Magnetar-linked CDOs, the hedge fund itself is not the center of the probe; Mizuho is. Magnetar has never been accused of any wrongdoing in any of the cases and has denied acting improperly. The hedge fund has said it did not control the asset-selection process for the CDOs.

The SEC probe is months from completion, the Journal reports, although the agency is said to be nearing settlements with Citigroup and Credit Suisse over other CDOs.

Magnetar has previously been linked to CDOs created by JPMorgan Chase—which resulted in a $153.6 million settlement—and Crédit Agricole.


In Depth

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

CAIS: How Technology is Disrupting the Alternative Investment Industry

Nov 7 2017 | 5:35pm ET

If there’s one thing that alternative investment professionals can agree on, it...