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Talk Your Book: CLOs – The Providers of Leverage

Animal Spirits Podcast

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The Differences Between a CLL and a Boogeyman Acronym

The CDOs of the mid 2000s invested in very junior pieces of securitizations of mortgages to subprime borrowers. The loan market, while 2008 was a negative year for the loan market, had you invested in loans just on an unlevered basis on January 1 of 2008,. By the end of 2009, you had a positive total return. Even with 11% of corporate America defaulting, you ended up with more money than you started with.

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