In a labor–management situation, for instance, a company may want to partner with its union to improve quality, productivity, or processes—yet it wants to be adversarial when it comes to negotiating benefits and wages. These two contrary positions may be difficult to understand. A true partnership needs to focus on mutual interests, but it doesn’t [...]
For investors tired of watching mutual fund managers make lousy decisions and underperform the market, mutual fund families invented the index fund. The manager of the index fund buys and holds the stocks in the market index. Index funds return exactly what the market returns. Index funds have become extremely popular in the last decade. [...]
Analyzing CDO performance is challenging because there is no publicly available secondary market data. Furthermore, there are no readily available performance statistics or CDO indexes to gauge total returns. Certain proxies for CDO collateral performance exist, such as leveraged-loan closed funds (as a proxy for CLOs), synthetic residential MBS indexes, and leveraged-loan indexes, but due [...]