Fitch Ratings is in the process of changing its collateralized debt obligation asset manager rating approach, otherwise known as CAM, to incorporate synthetic CDO asset managers, the rating agency announced last week. The move comes as a result of increasing U.S. issuance of managed synthetic CDOs, as well as the occurrence of larger synthetic buckets within cashflow CDOs.

"Asset manager risk is generally higher in synthetic CDOs because these structures tend to offer more trading flexibility than cash transactions," Fitch wrote.

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