be 2005>Wall Street big nose mode: ON>create “CDO”>bundle thousands of subprime mortgages>“these are AAA now, trust me bro”>entire system collapsesbe 2012>big nose need money again>can’t say “CDO” anymore, public remembers>rename it “CLO”>now just bundle shit corporate loans instead of mortgages>call them “secured” because businesses sound serious>regulators: “hmm this looks familiar”>big nose: “nah this time it’s different”>commercial housing skyrocketbe 2023>interest rates, building costs and rents go brrrr>buyers vanish>developers can’t refinance>CLO investors sweating>regulators: “wait, this was just CDO with extra steps”>companies start defaulting>the real estate market is freezing, funds are collapsing>entire system...Just... why? The only difference now is that nobody is talking about this. I think it's time to cause a public panic. This entire shit needs to collapse.
>>61056467This sounds interesting. Please expand on the topic. What is CLO? and how exactly do they work? Why they are in your opinion "just CDO with extra steps"?
>>61056502CLOs are the same as CDOs.CDO – Collateralized Debt Obligation – shitty mortgage bonds packed as AAACLO – Collateralized Loan Obligation – shitty company bonds packed as AAAshitty = low probability of repaymentAAA assets = exceptionally successful fulfillment of obligationsExtra steps = a huge portion in CLO are bonds of companies in commercial housingJust like last time, shit fall on ordinary people.
>>61056582But how do you see which companies are in CLO? Is this only for US markets or global practice sort of like the "new hot thing"?I was thinking how big corpo's are always worried about being "in profit" but "missed target profit by 5%" which sounds a bit overplayed for a billion dollar company. But if they are indeed over leveraged on these CLO's 5% might be the difference between staying in business and bankruptcy is it not?
>>61056467This is AI written greenslop
>>61056467So when will this shit blow up again?
>>61056666It started to blow two years ago, silently. That's why everyone is alking about conflicts - they are good strawman.
>>61056622It is. Every single word.
>>61056782How did you get it to be antisemitic?
>>61056798I wrote it, then I just run it through the AI. Sometinmes it won't catch it.
>>61056607These assets have numbers. There Are some public tools depending if you want to see it for the US or the EU.CLOs have separated real estate packs called CRE CLOs they should make just around 8% of all CLOs, but why would companies take over 90% of loans for non-real estate spending? It does not make sense.In reality, they make around one third of all CLOs, hiding outside of their original category.
>>61056666Collateralized Bitcoin Obligations
>>61056467>why?Because we let them out of the camps
>>61057007And the best part is, that the big nose is silently collecting the property of failed companies.
>>61056582Thanks for this anon, I'm not very /biz/ knowledgeable and your explanation makes sense
>>61058049That was the simplified explanation.A fund manager of some investment company, such as Blackstone, creates a company called a Special Purpose Vehicle which buys bonds from banks. CLOs are created by SPVs. Bonds of all possible ratings are added to the CLO and the SPV sells off individual parts od CLO called tranches. The tranches are divided by ratings and the yelds are distributed according to the level of risk od particular tranche. Therefore, the riskiest tranches seem the most attractive and the highest quality ones have low returns.Most of the big investors are buying these tranches, because they make money.All looks fine, but it gives to banks an opportunity to give more loans than they should by regulations. When the economy is so bad that the shit bonds are not repaid in greater scale, they are destroying investors and investment funds.
>>61056467The real problem isn't some abstract "financial engineering", it's that during the Scamdemic everyone got used to working from home. Business districts and especially commercial office buildings lost all their office-worker customers and tenants. Service businesses like lunch restaurants shuttered. Office tower valuations collapsed as leases were being cancelled.The whole "back to the office!!!" bullshit is just the Jews' way of demanding that corporate rentoids pay them their lease fees for office space that nobody wants or needs any more. Even with that, though, some people aren't going back and rents and hence valuations aren't recovering like they need to to avoid defaults.But it isn't nearly as bad as 2008, which was systemic. This crisis is heavily focused on the huge commercial office tower market, which happens to be largely (((Jews))).
>>61056467they'll figure out something
>>61058910So basically just like 2008 but this time the loans are not as much mortages but there can be personal loans inside the CLO's as well?If true, this is even worse because personal loans have a much higher chance of default and even higher chance of the person "not having anything to cover the loan + interest"
>>61061421Not that exactly. It's only for commercial "short term" loans.Commercial mortgages are packed into something else called CMBS, which should be safe for now.Companies should use company mortgages, but mortgages have big interests and are very regulated. On the other hand, company loans have low interests and companies can do whatever they want with this money.CLOs are made just from company short term loans.It's worse than that. Even if CLOs can't target ordinary people directly, because they pack only company loans, CLOs are in a lot of financial funds. If you wonder why your pension is growing so good, it's because your money are also invested in CLOs.The "better" part of this is, that if a company can not pay their loans, the banks just take their money from companies, which is the reason why there is now so much companies in financial troubles. Companies are failing and people are not only losing their jobs, but the risk of losing their savings also grows. That's one of the reasons why the price of gold is growing.
>>61061713well explained thanks a lot!
