Who provided the leverage to MF Global?

[Hamlet]

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?

 

[brewer12345]

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.

 

[nun]

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.

 

[Running_Man]

Since they appear to have stolen 1 billion from their customers I don't know how much faith you can have in published financials

 

[HFWR]

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...

 

[IBWino]

Risk is secondary when you are gambling with someone else's money.