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"There are more than $1 trillion worth of leveraged loans currently outstanding. The majority are held in CLOs." To get some perspective, the FED recently adde
by gridlockd 6y ago
"There are more than $1 trillion worth of leveraged loans currently outstanding. The majority are held in CLOs."
To get some perspective, the FED recently added almost three trillion dollars of "not QE" to the balance sheet, mostly because of COVID-19.
They'll be bailed out.
"But this time, the bailout proposal will likely face stiffer opposition, from both parties"
Doubtful. Everything can be blamed on the virus this time.
- jandrese 6y agoDebt only matters if there is a Democrat in the White House.
- mrep 6y agoWhat part of the FEDs balance sheet [0] are you concerned about getting bailed out because it is pretty much entirely composed of the US government's own debt through US treasury securities and citizens homes through mortgage backed securities? [0]: https://www.federalreserve.gov/releases/h41/current/h41.htm https://www.federalreserve.gov/releases/h41/current/h41.htm
- gridlockd 6y agoI'm saying the banks holding CLOs will get bailed out much in the same way as those holding mortgage-backed securities. I'd be concerned if this didn't happen.