Collateralised Debt Obligations 2.0

22 October 2018

 

For readers who remember the sub-prime disaster and the “collateralised debt obligations” (CDOs) which were part of it, here’s a recent report to give one pause. The Bank of England’s Financial Policy Committee (FPC) has recently pointed to rapid growth of “leveraged loans” in the UK as potential problem. In its minutes of its October meeting, it noted the growth of leveraged loans, firstly in the US but also in...

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