Wall Street’s debt machine is being powered by a familiar engine: securitisation.
As scrutiny of the $1.2tn leveraged loan market has increased, focus has turned to the market’s main source of support: collateralised loan obligations.
CLOs are vehicles which take a group of risky loans and then use them to back a series of bonds of varying degrees of safety. Investors in the most perilous, lowest-rated “tranches”, as they are known, are rewarded with higher returns but are hit first if the underlying loans — issued to low-rated or heavily indebted companies across the US — begin to default.
您已閱讀12%（599字），剩餘88%（4205字）包含更多重要資訊，訂閱以繼續探索完整內容，並享受更多專屬服務。