Don't blame CPM
Investment banks have reported billions of dollars in leveraged loan and subprime-related writedowns in the third and fourth quarters of last year. Some people argue that credit portfolio managers had a duty to help prevent those losses. Did credit portfolio management fail? Duncan Wood reports
As the banking industry tries to digest the roughly $120 billion in losses suffered on subprime-linked securities to date, an argument is brewing about how much blame should be attached to banks' credit portfolio management (CPM) functions, and the lessons - if any - those functions can take from the crisis. On one hand, portfolio managers themselves point out the majority of the losses came from
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