If the grounds for another financial crisis are brewing, it doesn’t take a lot of investigation to determine where they might lie.
Where CDOs were generally packages of mortgages, CLOs are packages of bank loans, pooled and then sliced into tranches with varying levels of risk exposure for investors. Technically, CLOs are a sub-set of CDOs; a specific form of collateralised debt.By themselves, CLOs might not represent a grave threat, given that there are 'only' $US700 billion or so of them on issue, owned largely by non-bank investors.
Federal Reserve Board chairman, Jerome Powell says US business debt has clearly reached a level that should give investors and businesses reasons to pause and reflect.
CLOs are the largest lenders in the leveraged loan category but mutual funds, insurers, hedge funds and other yield-chasing investors also have exposures. The Fed and the G20-sponsored Financial Stability Board are trying to determine the size of the leveraged loan market globally and identify its investors so that they can understand the risks.
ProfSteveKeen StephenBartho If there is another financial crisis as a result of CDOs the US shale oil industry can't finance new wells needed to offset rampant decline in old wells. Then production will drop like a stone. Another 2008 type oil price shock followed by GFC2a
Which century am I in? Has the feel of the 1920s approaching not the 2020s.
Trump has rolled back Frank Barney act He is a champion of Wall st crooks
Did we learn fucking nothing?!