Editor's letter

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Investment banks taking risk in the credit markets - or for that matter in foreign exchange, equities or commodities - are fast becoming a thing of the past. They're far more comfortable as distributors of risk, offsetting it naturally by matching buyers and sellers in the market.

One beneficiary of the declining risk appetites of investment banks is a new group of derivatives specialists known as derivatives product companies. These special-purpose vehicles are built to gain extremely high c

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