RiskMetrics Tool Helps Hedge Funds Gauge Synthetic CDO Risk

Heires, Katherine
December 2007
Securities Industry News;12/10/2007, Vol. 19 Issue 41, p8
Trade Publication
The article reports on a new measurement tool for structured credit launched by RiskMetrics Group. Risk management unit co-head Gregg Berman cited the new structured credit product as a response to growing demand, particularly from hedge funds, for a tool to accurately measure risk for synthetic collateralized debt obligations (CDO) in contrast to asset-backed CDOs. The new tool allows clients to measure risk for CDOs based on individual companies as well as the iTraxx and CDX indexes.


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