Banks Are The Largest Holders Worldwide Of Leveraged Loans And Collateralized Loan Obligations
While some would say there is less systemic risk with CLOs tbe interconnection between private equity, CLOs and the real economy is staggering. 65% of leveraged loans are funded by CLOs. From pensions invested in PE to the millions of real jobs connected to PE owned firms to bank exposure, CLOs may present MORE systemic risk than the subprime CDOs of 2007.
#CLOs
#privateequity