CDO managers - Do the ends justify the fees?

Credit Risk

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In the workplace, those who manage well are supposed to make a difference, and good managers are expected to be compensated accordingly for their skill. Equally, good synthetic collateralised debt obligation (CDO) managers are supposed to have an impact. The good ones should offer investors some comfort during challenging credit markets by using their expertise to limit defaults and losses.

The global CDO market reached an estimated $481 billion in 2006, according to research from Dresdner Kl

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