Markets sent a sign November 2019 when CLO’s started defaulting at 5% and the market reacted in December. The FED answered the market with a rate cut and opened up the repo market and started to buy up CLO’s. The CLO defaults are up to 20%+.

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by shanish82

Check graph on page 53

Sources: https://www.federalreserve.gov/publications/files/financial-stability-report-20200515.pdf Go to pages 50-53.

Also https://www.propublica.org/article/whistleblower-wall-street-has-engaged-in-widespread-manipulation-of-mortgage-funds