“Everyone knows you are playing with fire with leverage,”

In 2008, the culprits were real estate speculators, investments banks that fueled the bubble while leveraging books about 40 to 1

 They borrowed to multiply profits on mortgages, junk debt and municipal and government bonds. The leverage means losses are getting amplified too.

 The drop in prices for leveraged loans is also hitting investment vehicles known as collateralized loan obligations that are packed full of them.

 Bloomberg 1 April 2020



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