Investors would not dream of paying a performance fee to traditional fund managers merely for matching the market return, yet they cheerfully reward private-equity managers for the same feat.

We have witnessed financial services (think asset management, hedge funds, buyout funds, private equity, and venture capital) grow as a percentage of GNP for the past thirty years.

But what's truly driving the market lately is a surge in interest from institutional investors like hedge funds, insurance companies and private equity looking to buy up loans.