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Structured for Success

Banks, not hedge funds, got caught holding the bag when the CDO market collapsed. Savvy managers can capitalize on their troubles.

Don’t write off securitization just yet. The technology for creating collateralized debt obligations has existed for more than two decades. It has been used to securitize senior secured bank loans, subprime residential mortgages and just about everything in between. As a result, CDOs are no strangers to boom-and-bust cycles. But

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