Cornerstone Research analyzed an investor bank’s claims of improper practices by the CDO collateral manager, which allegedly led to investor losses during the financial crisis. Cornerstone Research was retained by the defendant to assess a bank’s claims regarding its investment in synthetic bespoke collateralized debt obligations (CDOs). Cornerstone Research’s analysis showed that the CDO collateral manager’s actions were consistent with the collateral management agreement and did not cause the investor’s losses. Synthetic bespoke CDOs are typically single-tranche CDOs that allow investors to customize their credit risk exposure. These CDOs provide flexibility to both investors and collateral managers by allowing them to make adjustments to the underlying portfolio based on their performan

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