What is a CLO? (Collateralized Loan Obligation) And Why It May Spark the Financial Crisis Part 2

Apparently nobody learned any lessons from 2008. Derivative products are dangerous. Investors have are purchasing less of the same types of derivatives that caused the Financial Crisis. But do not be deceived. They’re still putting massive amounts of money into derivatives. Just a new set of monsters. Here we go again.

Do you think that a CLO is a concern?

 

Collateralized Loan Obligation (CLO)

https://www.investopedia.com/terms/c/clo.asp

CLO-chart-web.jpg (1600×1075)

https://enterprise.press/wp-content/uploads/2019/01/CLO-chart-web.jpg

Wall Street’s CLO Machine Fuels Fortunes from Toolmaker to Banks

https://www.bloomberg.com/graphics/2018-collateralized-loan-obligations/

CLO for dummies.jpg (890×548)

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