https://www.zerohedge.com/s3/files/inline-images/CLO%20for%20dummies.jpg https://www.zerohedge.com/s3/files/inline-images/CLO%20for%2... Debt from multiple iss

https://www.zerohedge.com/s3/files/inline-images/CLO%20for%20dummies.jpg https://www.zerohedge.com/s3/files/inline-images/CLO%20for%2... Debt from multiple issuers is pooled and sold by pieces to investors with different risk profiles. The more risky layers will be the first touched if there are problems, but pay better in the best case. High risk (variation in expected returns), high (expected) return. The idea is the "good" part of product (the AAA layer) is very safe... according to the model. But it may not be so safe after all if things don't go as expected.