JohnnyMonaco

Short position on Stock Market- Leveraged Loan catastrophe Pt. 2

From 2015 on, Big banks have BEEN at it with multi-billion dollar sales of new synthetic CDO product (Bespoke Tranche Opportunities), as well as "loan pool auctions" by Freddie Mac and Fannie Mae, that essentially repackage defaulted loans and re-sell them for more risk averse investors. This has continued to make our financial institutions rich, as you can easily note with naked eyes, with major indexes hitting record highs. as well as increased volatility. Im calling bullshit, due to the fact that the leveraged loan market has ballooned in the past two years, hitting a record of $1.66 Tril in 2017 and standing still at $1.46 Tril in 2018. The dictator at this point is the Fed's interest rates, with California's housing market in shambles, millennial's lack of financial stability (making them incapable of purchasing a stable mortgage loan) and the abyss of credit the United States Financial systems have dug themselves into, I smell another consumer bailout in the course of the next 1-2 years. Make sure you get plenty of Velveeta, tobacco dip and baby wipes.
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