The Dangers of Collateralized Loans in the Commercial Real Estate Space

A lot of commercial real estate loans that were packaged into CLOs have found their way into the collateral set collateral streams, which is one possible explanation for why we've seen such extreme collateral shortages over the last six weeks. So I think that's the problem that the fatal mistake was already made years ago and so it's sort of been sitting there rotting away just waiting for the time in which the rot would become too much. The economic fundamentals just never supported that level of intrusion into the space to begin with.