Here's a short story:

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. (End of story)

Provide your best guess for the following question. Give ONLY the guess, no other words or explanation.

For example:

Guess: <most likely guess, as short as possible; not a complete sentence, just the guess!>

Here are a few examples of questions and answers:

Question: How are professional investment managers compensated?
Guess: on the volume of client assets under management

Question: what effect does this have?
Guess: led to bad investments

Question: did they feel pressure to grow the assets under their control?
Guess: yes

Question: who did they have a conflict of interest with?
Guess: their clients

Question: what decision did they have to make when profits from credit assets went down?
Guess: choice of either investing in assets where returns did not reflect true credit risk or returning funds to clients

Question: which did many of them choose?
Guess: to continue to invest client funds in over-priced investments

Question: did this benefit their clientele?
Guess: No

Now answer the following question in the same format.

Question: what effect did too much global investment capital have?

caused the yields on credit assets to decline