Collateralized Loan Obligation (CLO)

Discussion in 'Other Asset Classes' started by New2prop, 8th Sep, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. New2prop

    New2prop Well-Known Member

    Joined:
    26th Jul, 2016
    Posts:
    184
    Location:
    Sydney
    Hi everyone,

    I came across CLOs today and learned that the big 4 banks are loaded on CLOs. I also read that they are similar to the Collateralized Debt Obligations (CDO) that brought down Lehman Brothers.

    If they are indeed similar I can't believe that we have not learned the lessons from the last decade (which caused deep wounds to most) and fresh in our memories.

    Can I seek some perspectives on this?
     
    New2prop, 8th Sep, 2017
    #1
  2. New2prop

    New2prop Well-Known Member

    Joined:
    26th Jul, 2016
    Posts:
    184
    Location:
    Sydney
    Where to look for in a company's financial statement to see if they hold CLOs?
     
    New2prop, 8th Sep, 2017
    #2
  3. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,323
    Location:
    Australia
    You might as well say that mortgages caused the financial crisis and were all doomed because all our banks have lots of mortgages.
     
    Last edited: 8th Sep, 2017
    Trainee, 8th Sep, 2017
    #3
    thatbum likes this.
  4. New2prop

    New2prop Well-Known Member

    Joined:
    26th Jul, 2016
    Posts:
    184
    Location:
    Sydney
    As Warren Buffet says only when the tide goes out you can see who is swimming naked :)
     
    New2prop, 9th Sep, 2017
    #4