Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Who provided the leverage to MF Global?
Old 11-22-2011, 12:38 PM   #1
Thinks s/he gets paid by the post
 
Join Date: Aug 2006
Posts: 1,361
Who provided the leverage to MF Global?

I haven't found anything reported that specifies where MF Global was able to attain their massive leverage.

I just don't understand who would be willing to take that risk after everthing we've been through in the last few years.

Does anyone know who provided that leverage?
__________________

__________________
Hamlet is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-22-2011, 01:26 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Form 10-Q

Balance sheet is on page 4. Looks like most of the leverage was secured via repurchase agreements and the like. Actual borrowings and bonds issued were fairly minor.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 11-22-2011, 08:10 PM   #3
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 4,836
Quote:
Originally Posted by brewer12345 View Post
Form 10-Q

Balance sheet is on page 4. Looks like most of the leverage was secured via repurchase agreements and the like. Actual borrowings and bonds issued were fairly minor.
So they raised $17.9B by selling repos, sold $8.3B worth of securities before they'd bought them and turned around and bought $12B in repos and $11.6B in other securities, presumably this is the Euro bet. The folks who bought the repos from MF Global presumably wanted to sell them back at the agreed higher price and....oops those European investments weren't enough to cover them. A small investor doing this would be called dumb, stupid an idiot etc.....I'm just saying.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 65% Equity Funds / 20% Bonds / 7% Stable Value /3% Cash / 5% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   Reply With Quote
Old 11-22-2011, 09:14 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Sep 2006
Posts: 1,692
Since they appear to have stolen 1 billion from their customers I don't know how much faith you can have in published financials
__________________
Running_Man is offline   Reply With Quote
Old 11-23-2011, 09:06 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Quote:
Originally Posted by Running_Man View Post
Since they appear to have stolen 1 billion from their customers I don't know how much faith you can have in published financials
But at least we now know what "MF" stands for...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 11-23-2011, 02:06 PM   #6
Recycles dryer sheets
IBWino's Avatar
 
Join Date: May 2006
Posts: 423
Risk is secondary when you are gambling with someone else's money.
__________________

__________________
IBWino is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Global Warming confirmed by independent study donheff Other topics 38 02-14-2012 07:08 PM
MF Global haha FIRE and Money 14 11-03-2011 03:29 PM
Global Economic Collapse Thread NYEXPAT Other topics 10 09-22-2011 07:27 PM
Global Bonds Whisper9999 FIRE and Money 6 06-26-2011 08:52 AM

 

 
All times are GMT -6. The time now is 10:57 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.