The Magnetar Trade: How One Hedge Fund Helped Keep The Bubble Going

``... 96 percent of the Magnetar deals were in default by the end of 2008, compared with 68 percent for comparable CDOs... At least nine banks helped Magnetar hatch deals. Merrill Lynch, Citigroup and UBS all did multiple deals with Magnetar. JPMorgan Chase, often lauded for having avoided the worst of the CDO craze, actually ended up doing one of the riskiest deals with Magnetar, in May 2007, nearly a year after housing prices started to decline. According to marketing material and prospectuses , the banks didn't disclose to CDO investors the role Magnetar played.''