1. GLG Institute Presentation Collateralized Debt Obligations Jim Finkel CEO, Dynamic Credit Partners

7. First Thing-Let’s Kill all the Journalists “ Sound Credit Tool Or Toxic Waste?” Applied Derivatives, December, 2004 “ A Ticking Time Bomb?” The legacy of the early days of the synthetic collateralized debt obligations market could be a painful future for many of the institutions involved. Risk Magazine , October 2004 “ Are Derivatives Weapons Of Mass Financial Destruction?” Is a Meltdown Cooking in Exotic Assets, Or Can Markets Handle the Next LTCM? …Warren Buffett warned that the global financial system was held hostage to ticking "time bombs" and at risk of a "megacatastrophe.“ Financial Times, May 2006 “ A scandal waiting to happen?” Tuesday, 26 February, 2002, BBC News, referencing CDOs as the next Enron “ The Toxic Avenger” Collateralized debt obligations raise capital for junk-rated borrowers. CFO.com , January, 2002 The Poison in Your Pension “ As the $503 billion-a-year CDO market thrives, CDO marketers like Bear Stearns and Citigroup find buyers for the portions known as toxic waste, the equity tranches.” Bloomberg Markets , July 2007 “ Structured finance CDO—not cash on delivery” Structured finance can bring unstructured losses…. The chairman of American Express, Kenneth Chenault, was man enough to admit last week that his outfit “did not fully comprehend” the risk underlying a portfolio of whizz-bang investments known as CDOs. The Economist , July 2001 “ Barclay’s ‘Toxic Waste’ Row with German Bank Settled” Barclays had settled a high profile dispute with a German bank which was claiming $150m to cover its losses in financial instruments which have been described by regulators as “toxic waste” The Guardian , February, 2005 “ Invest at the Point of Maximum Pessimism” Sir John Templeton Collateral Debt Obligations: Complex and Risky - Yet Popular Financial Times , November 2004

8. Example of a Typical Cash Flow CDO Structure All in “ cost of funds” 6 % 12% of Capital Structure Yield = 8% ASSETS DEBT LIABILITIES & EQUITY 2 % Excess Spread 88% of Capital Structure MBS (Mortgage-Backed Securities) Bonds Bank Loans Middle Market Loans Emerging Market Debt ABS (Asset-Backed Securities) MBS (Mortgage-Backed Securities) Ongoing Junior Management Fees Arranging Bank Upfront Fees and Ongoing Senior Management Fees Upfront Deal Expenses (Legal/Rating Agency/Accounting) Ongoing Administrative Expenses Equity Tranche 12% Equity = 8x leverage 8x leverage of 2% excess spread = 16% projected IRR Mezzanine Notes : A through BB rated Bearing coupons of LIBOR + 100 - 1100 Senior Notes : Aaa/AAA to AA rated Bearing coupons of LIBOR + 25 - 80

9. Ramp Up Reinvestment Amortization Closing What Does A CDO Manager Do ? Year 1 Redemption Right at Year 3 Year 4-5 Year 8-10 Auction Call at Year 8-10 Year 12 Final Legal Maturity Stages in the Life of a CDO

10. Development of the CDO Market HY Credit defaults of 2001/2002 take their toll Evolution of ‘synthetic’ CDOs from the credit default swap markets CDO underlying assets classes converge on more stable, secured assets (leveraged loans, ABS) Market reaches tightest spread levels ever Issuance volume hits record levels Efficiencies via enhanced competition and lower fees 2002 2003 2004 2005 1996 1997 1998 1999 2000 Rating Agencies Issue CDO Criteria 2006 2001 CDO Manager growth, consolidation and personnel shifting Secondary market develops 2007 Shift in issuance away from HY/EM; beginnings of ABS CDOs in US Subprime woes cause market to correct CDO Timeline

11. Market Snapshot: Volume and Issuance Breakdown Source: JP Morgan May 2007 YTD $ Billion

12. Growth of ABS CDO Issuance Source: JPMorgan As of 5/14/2007

13. Source: JPMorgan Leveraged Loan Spreads and CLO Issuance Volume

14. Covenant-Lite Loans

16. Alpha Generation through Trading CDOs

17. Dynamic Credit Partners, LLC

18. Evolution of Dynamic Credit Partners

20. Organization - Chart Daniel Nigro Trader/Portfolio Manager Chris Sandleitner ABS Analyst Mendel Starkman Senior CDO Analyst Dov Warman CDO Analyst Deo Sabino CDO Trader/Analyst Aniket Deshpande CDO Analyst David Schwartz, CFA Trader/Portfolio Manager Sam Haddad CDO Analyst CDO Team ABS Team Jim Finkel CEO Tonko Gast CIO Lauren Wright Mark Salama Marketing & Investor Relations General Counsel Edward H. Benton, Esq. Sumeet Sablok ABS/CDO Intern David Goldweitz CMBS Analyst Lily Miao Marketing Intern Eugene Shklyar Generalist Programmer Steve Pennington Quantitative Systems Pamela Byrd Database Development And Programming Systems & Analytics John Gallo Systems Administrator Jing Lu Quantitative Developer Andrew Ragone Programmer Andrew Wax Chief Operating Officer/ Chief Compliance Officer Ashley Montgomery Controller/ Investor Support Karen Llopiz Executive Assistant Administration Andrea Kollmorgen CDO Support Analyst David Lee CDO Surveillance/ Opportunities Fund Support Chris Hughes CDO/ABS Trade Support Operations