Regulators, credit ratings agencies, and investors became increasingly concerned regarding the size of MF Global's exposure to European sovereign debt. A credit rating downgrade was all it took to spark a liquidity crisis, and MF Global found itself unable to meet margin calls and client redemptions, ultimately forcing the broker into bankruptcy. Click the image below to enlarge.
MF Global Infographic: How the Trade Actually Went Down
By Alex Dumortier, CFA – Updated Apr 6, 2017 at 4:57PM
About the Author
Alex Dumortier writes a twice-daily column covering topical subjects from a contrarian, value-oriented perspective; he also co-authored 'The Astonishing Collapse of MF Global'. He received his degree in Economics and Political Economy from Princeton University and began his career in the City of London.
After having lived in several capital cities, Alex now resides in Washington, D.C.. When he is not reading or writing, Alex likes to run and practice Bikram yoga (a form of "hot" yoga.)
