Why the CLO Market Has Been Growing So Fast

Nov.04 -- The collateralized loan obligation, or CLO, is a very hot investment in the financial world. Bloomberg's Jason Kelly reports on why the market has been growing so fast and how there could be trouble on the horizon.

[cmat]

As CLOs downgrades spikes a little bit more every months while the market is highly illiquid (just check it out by yourself), and as long as 50% of the CLOs new issuance are used to refinance existing ones, this thing could trigger either :
-the end of the Banking system as we know it today (most especially in Japan where banks hold 15% of the total market, Deutsche Bank collapse as they currently massively invest on it to try to save the bank, generating collateral damages to the global financial system),
-a massive flow of Central Banks printing money to save the system.
In the first case, we would get a depression, in the second case, hyperinflation. I personnally think we will get both.

[marekkolenda]

Stocks market record high economy is booming and negative interest rates this or next year.