A fast-evolving world

Benchmarks are an established feature of the investment industry, but the concept is far from static. Risk is using this edition of our Risk Management for Investors quarterly special report to review developments in the fast-evolving world of benchmarks and indexes.

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In credit, the development of synthetic index products presents a potential revolutionfor investors looking to branch out in their use of credit derivatives. The growthof this nascent market presents significant opportunities for more sophisticatedinvestors to make arbitrage and relative-value plays (viewarticle).

In the search for alpha, investors are also turning their allocations to alternativeinvestments such as collateralised debt obligations (CDOs) and hedge funds. Thetrend is

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