Similar problems are faced by the core financial intermediaries that often act as counterparties to hedge funds in complex synthetic CDO transactions or that finance hedge funds' investments in bespoke CDO tranches. Complex trading strategies and positions, too, can create problems. For example, counterparty risks may be underestimated because of failures to aggregate exposures to risks across instruments and counterparties.
The English philosopher Francis Bacon famously said “Knowledge is Power.” And to this, American computer chip inventor Robert Noyce added that “knowledge shared is power multiplied.” The launch of the Knowledge Resource Network here in Metro Manila is the beginning. We look forward to the future with confidence that our partnerships under the KRN will generate multiple benefits for our people.