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...]
MNY094 Plus: Banks, Loans, and Smart Beta Conditions
This week on Money For the Rest of Us Plus I discuss how central banks influence lending, what is causing the bank stock sell off, and what are some future enhancements to the Hub pertaining to smart beta and investment conditions. The episode length is 17 minutes. … [Read more...]
94: How Money Is Created and Destroyed
How federal governments allow banks to create the vast majority of the world's money supply, and why that erodes the value of money over time. In this episode you'll learn: What is financial intermediation.What is fractional reserve banking.How banks create money through creative accounting.How banks decide how much money to create through their lending decisions.How central banks try to control the amount of lending.Why federal governments can create money in theory but don't do so … [Read more...]
