A Shrinking $1.3 Trillion Securities Market and collateralized loan obligations

Investment bankers in leveraged finance — the lucrative lending that oils the wheels of M&A and feeds the $1.3 trillion market for collateralized loan obligations 

About 40% of the securities’ issuers have yet to price a new deal this year

Companies have roughly half-a-trillion dollars of leveraged loans coming due in the next three years, and CLOs control about 70% of the US corporate-loan market. 

Bloomberg 23 oktober 2023

https://www.bloomberg.com/news/articles/2023-10-23/wall-street-s-hopes-for-a-clo-market-revival-have-been-crushed


Money Managers With $100 Trillion Confront End of the Bull Market

Active asset managers have been bleeding cash, and strategies to stem the outflows haven't had much effect. Many may not survive a bear market.

Bloomberg 23 oktober 2023 

https://www.bloomberg.com/news/features/2023-10-22/active-vs-passive-investing-money-managers-confront-end-of-bull-market


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

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

Bloomberg 1 April 2020

https://englundmacro.blogspot.com/2020/04/everyone-knows-you-are-playing-with.html


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