The loveliest thing is that anyone predicting default or bankruptcy can buy CDS’s on bonds they don’t even own!!! They profit from a crash!! Nothing can go wrong, eh?
PIKS… these bad private credit loans just placing delinquency on the back end of the loans. To show them as good. Then packaging CLOs and offloading them to pension funds and municipalities. Same playbook as 08. They know it’s already broken. They’re just packing the the “dog shit wrapped in cat shit” and offloading it. Exact same scam. This gonna end badly for pension funds and municipalities. Los Angeles school district already facing insolvency. Just wait till all their investments stop bringing in returns. So many micro cracks in the bond markets. And private credit.
Refinancing debt in an inflationary cycle undermines everything and looking at the current situation, imo spells disaster, (for those caught in the herd ;
You had me at 'new CDSs'. One question nobody else will (probably) ask: what entity is ordained as arbitrator of those contracts? Can they be trusted to follow the contract, if the whole place is on fire, like in 2008-09? Some of the holders of CDSs back then got screwed, if I remember correctly.
It’s not a banking crisis they do not have any consequences for their gambling. Jail them for once then you get to call it a banking crisis. Fire them ..then you get to call it a banking crisis, make them lose their houses cars and money then you get to call it a banking crisis. The only bloody people it’s not a crisis for us the bankers.
We use cookies, device fingerprinting and cross-device tracking to personalise content, serve targeted advertising, and analyse how you use our site across your devices. By clicking Accept all you consent to the use of these tracking technologies. Your data may be used to build a profile of your interests and show you personalised ads on other sites.
Privacy policy
Comments (30)
Daily Junction discussion mixed with clearly attributed comments from the original video provider.
Join in — free. Comments on Daily Junction are for members, so real names stay rare and bots stay out.
One field. We email you a 6-digit code — no password needed. Your comment is kept while you do it.
Under 13? You’ll need a parent’s OK first — it takes them one click.
Perhaps the banks want to clean out what little "money" is left when private credit funds file for bankruptcy.