Is a bank collapse coming due to bank exposure to collateralized loan obligations as defaults increase? Topics covered include Show Notes The Looming Bank Collapse by Frank Partnoy—The Atlantic Understanding Collateralized Loan Obligations (CLOs)—Guggenheim Vulnerabilities associated with leveraged loans and collateralised loan obligations—Financial Stability Board Who Owns U.S. CLO Securities? An Update by Tranche by Laurie DeMarco, Emily Liu, Tim … [Read more...]
270: Repo Rates Soared—Here’s Why It Matters
How a liquidity crunch in the short-term lending markets sent interest rates soaring. Why this is a huge blunder on the part of the Federal Reserve, and what it means for us as individual investors. In this episode you’ll learn: Show Notes New York Fed injects $66bn into short-term lending markets by Joe Rennison—Financial Times Repo and Reverse Repo Agreements—Federal Reserve Bank of New York Repo Rate Spike: A ‘Tail’ Of Low Liquidity by Jerome M. Schneider, William … [Read more...]
