The Magnetar Trade: Trojan Horse from a Hedge Fund

What happens when it's insanely profitable to lose money? Huh? Last Friday, ProPublica described how one hedge fund—Magnetar—invested in the toxic waste from sub-prime mortgages no one else wanted. And it made wads of money. The story is long but well worth your time. The Magnetar Trade illustrates: the capital markets are a new-age war; deception is a tactic; and the old Trojan Horse play...