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Investment bankingMarch 7 2005

Search for yield unearths new dangers in credit markets

Credit specialists have risen to market challenges with new products. However, the recent fashion for longer-dated synthetic CDOs could present more risks than investors realise. Natasha de Teran asks how concerned we should be about this latest trend.
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Economic conditions have been testing bankers’ wits in recent times. Equity bankers, in particular, have had a tough time rehabilitating their asset class in the collective mind of an investor base that is apparently still sceptical about the products on offer.

At the other end of the spectrum, FX and commodity-related bankers have barely had a chance to take a breath in the face of the renewed interest in their sectors.

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