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Having just read both Liar's Poker and Barbarians at the Gates, the concept of CLOs sounds awfully familiar. Loaning money to high-risk companies? Bundling a w
by bostik 6y ago
Having just read both Liar's Poker and Barbarians at the Gates, the concept of CLOs sounds awfully familiar.
Loaning money to high-risk companies? Bundling a whole bunch of said loans into securities? High returns despite the risk of a significant fraction of defaults? Sounds like the world has been here before.
If this was a B-flick, it might well be called the return (or revenge) of the junk bond monster.
- Grimm1 6y agoThis sounds entirely the same and this time the industry probably thought they were so clever because companies are likely still less risky than individual consumers and then oops Corona!