Our data shows that 82% of CDOs rated by Moody's have not been downgraded. Many one-time issuers with limited experience in the collateral class backing a CDO have produced disastrous results and have since exited the CDO market. Some issuers even though otherwise experienced at managing a particular asset class, settled on a strategy that went for yield regardless of implied credit risk. Other CDO managers pursued a sector strategy, such as telecom or early emerging market, and, even though the portfolio otherwise met the investment rules of the CDO, these collateral pools deteriorated beyond the point of repair. Successful CDO investors look for a winning track record from the manager in the collateral asset class backing the CDO and a compelling reason for the manager to be committed to that asset class over time.