from Wolf Street:
What gets stuffed into the Wall-Street sausage maker on the American side are dollar-denominated risky “leveraged loans” – loans issued without collateral by over-indebted junk-rated companies. Banks slice and dice these leveraged loans, lumped them together into Collateralized Loan Obligations, and sell them to other financial institutions. These CLOs are then repackaged and peppered with derivatives to hedge against currency fluctuations.That’s what goes into the sausage maker.
What comes out of the sausage maker on the Japanese side are plump-looking, yen-denominated, highly rated bonds.
image/thabto.files.wordpress.comHelp us spread the ANTIDOTE to corporate propaganda.
Please follow SGT Report on Twitter & help share the message.