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

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of