Economy Blog » The Next Declining Acronym: CLOs

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The credit crunch has realized a cottage industry of prognosticators predicting where the next shoe will drop — collateralized loan obligations, municipal bonds, leveraged loans, what-have-you. In most cases, they’ve all been right.
Lately there’s been significant stress in collateralized loan obligations, which are losing value, even though these securities, in terms of risk, aren’t quite on the level of low-rated subprime debt, but aren’t foolproof either. In this case, we’re talking about bank loans, w…
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