Is a bank collapse coming due to bank exposure to collateralized loan obligations as defaults increase?
Topics covered include:
- What are collateralized loan obligations (CLOs), how are they structured, and what has been their historical default rates.
- How much exposure do banks have to CLOs and will it impact your bank savings and investments.
- What are bank capital ratios and how are they calculated.
- How banks are more conservatively run due to the adoption of the Basel III regulatory framework.
- What are bank stress tests and how have they performed.
- Why the Federal Reserve just capped dividends for the largest U.S. banks.
- How many U.S. banks have failed during the pandemic crisis compared to the Great Financial Crisis.
Thanks to Simplifi and Policygenius for sponsoring the episode.
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