Moreover, a conflict of interest between professional investment managers and their institutional clients, combined with a global glut in investment capital, led to bad investments by asset managers in over-priced credit assets. Professional investment managers generally are compensated based on the volume of client assets under management. There is, therefore, an incentive for asset managers to expand their assets under management in order to maximize their compensation. As the glut in global investment capital caused the yields on credit assets to decline, asset managers were faced with the choice of either investing in assets where returns did not reflect true credit risk or returning funds to clients. Many asset managers chose to continue to invest client funds in over-priced (under-yielding) investments, to the detriment of their clients, in order to maintain their assets under management. This choice was supported by a "plausible deniability" of the risks associated with subprime-based credit assets because the loss experience with early "vintages" of subprime loans was so low. QUESTIONS:

Q1:
1. What is the salary of professional investment managers based on?
2. The wages of professional investment managers are based on what?
3. 
Q2:
1. What did basing the salary of professional investment managers on the volume of client assets under management lead to?
2. Basing the wages of professional investment managers on the volume of client assets under management led to what undesirable effect?
3. 
Q3:
1. Did the professional investment managers feel pressured to grow the client assets under management in order to receive better compensation?
2. Was there an incentive for professional investment managers to grow clients assets under management so that they would be paid more?
3. 
Q4:
1. Which group of people did professional investment managers have a conflict of interest with?
2. Professional investment managers had a conflict of interest with what group of people?
3. 
Q5:
1. What was the choice that professional investment managers had to make as soon as credit assets went down?
2. When credit assets went down, what choice were professional investment managers faced with?
3. 
Q6:
1. What choice was made by most professional investment managers when credit assets went down?
2. What was the choice that was made by the majority of professional investment managers following the decrease in value of credit assets?
3. 
Q7:
1. Was investing clients' funds in over-priced credit assets beneficial to the professional investment managers' clients?
2. Did the clients of professional investment managers benefit from having their funds invested in over-priced credit assets?
3. 
Q8:
1. What did the investment of too much global investment capital cause?
2. What was the consequence of too much global investment capital?
3. 
Q9:
1. Were subprime mortgages considered as being dangerously risky?
2. Was it considered dangerously risky to invest in subprime mortgages?
3. 
Q10:
1. What could professional investment managers have done with their clients' money rather that invest in?
2. What could have been done with the clients' money by professional investment managers instead of investing it?
3. 
