Despite numerous calls and anecdotal evidence over recent months to the contrary, CDO investors still do not appear to be asking for much consolation when they buy into a deal run by a first-time manager. The so-called seasoned CDO managers - those who have weathered at least one full credit cycle - have been irritated by the ability of new managers to swoop into the market and price a deal only a couple basis points, if at all, wider than their own. They say investors purchasing bonds from new managers without a discount will regret that decision when making money isn't so easy.

As David Basra, managing director and co-head of European securitization at Citigroup, put it bluntly earlier this year in a call for manager price tiering: "I'm sorry, but a monkey could have made money in the last four years."

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