The New Derivative Monster That Could WIPE OUT the Financial System

The creation of the derivative has been wrong from the beginning. There’s no good reason for this to exist. Only that which is real should be allowed to be gambled on. Derivatives based on low-rated, high-risk debt? And they expect that it won’t fail? Are they out of their minds? Whatever. Here we go again…

A CLO is not exactly a CDO. But it is another bunch of garbage. Yes, it might spark the next crisis, but don’t worry, it’s just a small aspect of the financial system. The risk is contained. It can’t possibly spread to other investments. Even if it did, the Fed has our back. Ray Dalio said we have a few more years until a recession. Everyone shops at Amazon nowadays. Stocks always rise over the long term anyway…and now back to reality.

 

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www.zerohedge.com/s3/files/inline-images/CLO%20for%20dummies.jpg?itok=C-YNx52L

The Bomb That Blew Up in 2008? We’re Planting Another One

outline.com/ES6TsU

CLO Issuance Is Far Surpassing Other Types Of Asset-Backed Securities

www.forbes.com/sites/mayrarodriguezvalladares/2018/11/05/clo-issuance-is-far-surpassing-other-types-of-asset-backed-securities/#1c6ea42b1384

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thumbor.forbes.com/thumbor/960×0/https%3A%2F%2Fblogs-images.forbes.com%2Fmayrarodriguezvalladares%2Ffiles%2F2018%2F11%2FCDOvsCLO.jpg

CLOs Have Hit a Peak When Mom and Pop Show Up – Bloomberg

www.bloomberg.com/opinion/articles/2018-07-10/clos-have-hit-a-peak-when-mom-and-pop-show-up

Leveraged-Loan Protections Go From Bad to Worse – BNN Bloomberg

www.bnnbloomberg.ca/leveraged-loan-protections-go-from-bad-to-worse-1.1203610

blogs-images.forbes.com/mayrarodriguezvalladares/files/2018/10/BISLevLending.jpg (960×722)

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