HK have you seen this about US Banks

[KenyanPlato]

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in short

the banks are holding 2 trillion in unquestionable bets. 1 trillion in an animal called CLO; basically shylock loans to deadbeat businesses that have maxed credit elsewhere.. Then you have Variable Investment enterprises  an offbook casino that is being used by banks to avoid Capital requirement stress tests as mandated by Dodd Frank

https://www.theatlantic.com/magazine/archive/2020/07/coronavirus-banks-collapse/612247/

[hk]

Its something to look out for. However most of the major banks are very well capitalized. For example Goldman sachs has a balance sheet of more than 1trillion. With fed rates near zero the CLO will keep on rising as yields junkies search for higher yields. A company like Boeing would have needed government bailout if it wasn't for financial instruments like CLO.
Back in Kenya, we need such instruments like CLO to package all the non performing loans or a vulture funds to buy those loans and try to recover debt.

[Arcadian_Dreamer]

Its something to look out for. However most of the major banks are very well capitalized. For example Goldman sachs has a balance sheet of more than 1trillion. With fed rates near zero the CLO will keep on rising as yields junkies search for higher yields. A company like Boeing would have needed government bailout if it wasn't for financial instruments like CLO.
Back in Kenya, we need such instruments like CLO to package all the non performing loans or a vulture funds to buy those loans and try to recover debt.

What a brain dead idea. You importing their failed financial models.

[hk]

Its something to look out for. However most of the major banks are very well capitalized. For example Goldman sachs has a balance sheet of more than 1trillion. With fed rates near zero the CLO will keep on rising as yields junkies search for higher yields. A company like Boeing would have needed government bailout if it wasn't for financial instruments like CLO.
Back in Kenya, we need such instruments like CLO to package all the non performing loans or a vulture funds to buy those loans and try to recover debt.

What a brain dead idea. You importing their failed financial models.

Failed financial models? Secularization of debt whether be CLO (collatized loan obligations) or MDS (mortgage backed securities) are very successful financial instruments. What failed are things like synthetic CDOs. If one can determine the value of the underlying collateral CLO are good investment just like investing in junk bonds.  A company like quicken loans now the biggest mortage lender only generates mortgage then sells those loans to investors as MDS. Its like saying just because there was dotcom bust internet is a failed model.