5. Consider the following quote:

Until last year, this correlation pricing of single-tranche CDOs and first-to-default baskets was dependent on each bank or hedge fund’s assessment of correlation. However, in 2003 the banks behind iBoxx and Trac-x started trading tranched versions of the indexes.

This standardization in tranches has created a market where bank desks and hedge funds are assessing value and placing prices on the same products rather than on portfolios bespoke single-tranche CDOs and first-to-default baskets. Rather than the price of correlation being based on a model, it is now being set by the market?