Some of you are either too young or stupid to remember the financial crisis. Part of it built up thanks to CDO’s, CMO’s and CLO’s. I remember vividly working at my investment bank and was told to sell their CLO products, which yielded 10%+. I said no thanks, quit, started my own shop, and avoided the entire fiasco.
Well, thanks to the negative rate policies in Europe, and over $10 trillion in debt with zero yields, investors are gobbling up this toxic shit again. I wonder what sort of leverage is being used here, in order to get the yields? Maybe they’re leveraging 10-30x? Who the fuck knows? Nothing could go wrong.
“The CLO market looks strong in Europe this year,” said Dominik Winnicki, a London-based credit strategist at Barclays. “There is new money in CLOs, and CLO buyers are a big part of loan demand.”
The growth in CLOs, and a slowdown in new-loan issuance, has pushed leveraged-loan prices in Europe to the highest since 2007, based on an S&P Global Inc. index. New-loan sales fell about 20 percent in each of the past two years, according to data compiled by Bloomberg. This year, they are little changed at 92 billion euros, the data show.
About 12.7 billion euros of new CLOs have been issued this year, and the annual total will probably surpass 15 billion euros, Winnicki said. That’s up from 13.8 billion euros last year and 14.4 billion euros in 2014, he said.
That’s fucking great. We’re now doing the exact same thing that got us into the financial crisis to begin with. Let’s now get rid of Dodd-Frank, permit the investment banks to leverage up their balance sheets on collateralized debt, maybe this time leveraged energy debt, and have a go at it.
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helping to make this the big leagues : u gots a typo up there — u not able to edit that¿
Fuck off.
fuk off he sayz, but he fixd it. good man.
https://issuu.com/guggenheimpartners/docs/the-abcs-of-abs?ff=true&e=6986665/5539602
Page 6
Trump would dismantle Dodd Frank.
Dodd frank was gutted. Trump will repeal glass segiel.
Um reinstate glass segeil.
I support that.
Funny how trump ends up being archie bunker yelling at corrupt killary. Angry frustated americans fed up with rigged system, felt impassioned and rightious. While killary supports are overdosed and bored with sex talk and now slowly acknowledge some of the corruption of power and money at DNC. Reality is trump won big.
Yuge
Apparently mainstream media (and I’m sure CNBC will as well) hasn’t been informed yet laddies; even the supposedly “right” Fox (which really isn’t) is ignoring the ENTIRE DEBATE where Trump easily won and instead is focusing on the “Trump is a sore loser” theory. 2 things on that:
A: He hasn’t yet won or lost
B: He appeared to me to be saying he wanted to see what type of outcome there would be before answering.
This makes perfect sense especially considering the fuckery that went on in 2012. Didn’t some precincts in 2012 (Ohio or PA I think) report over 100% turnout and others without a SINGLE VOTE for Romney? I think the question was a setup and worry that this thing may be bitterly contested by either side regardless of the outcome. Of course the government currently in power is run by Obama & is COMPLETELY neutral, right? Arrrrr.
You lost all credibility when you said Fox news isn’t to the right.
This blog has seen better days. The media is reporting a Clinton victory, not due to any conspiracy, but due to the fact that he looked like a bumbling idiot last night.
Whats going on with eur/gbp !
QE talk
Aflow
Shut up
Bet trump is baiting the media on not accepting the result of election. Cus now he gets to keep talking about the DNC rigging and corrupt DNC employees who are too motivated by money and power. DNC is way more fucking scarry than not politicaly correct trump.
All these CLO problems won’t matter because we’ll have Trump, who claims his policies will push GDP growth to 6% by enacting trade barriers and reviving the industrial revolution.
that’s after the repricing that is needed. we will get 6% growth if we clean some of the bullshit. trump is retarded somewhat but he is not insane. He has consistently stated the market is made up and needs a massive correction. Icon is still his guy. the defaults and clean will happen after election and they fight for a year on how to helicopter money. and a round we go.
Stop baiting me
Amazing how investors think CLOs have the same risk level as U.S. Treasuries!