Collateralized Loan Obligations (CLOs) Explained in One Minute: Mortgage-Backed Securities 2.0?

Here before the CLO crash of 2024/25.

A CDO is a type of MBS, not vice versa

Thanks for explaining that in a simple and succinct way! I DID get a general understanding of CLOs in less then 2 minutes!

Serious question: Why is this considered an acceptable way to do business? Risky debt for sale? Again? It's as if the financial world lives in another universe. Given what happened with the last global fiasco, I genuinely don't understand how these transactions are accepted with a straight face.

ITS SHORTING TIME BOYS

Its actually scary, sounds like same shit all over again

what is the collateral of these securities? what gets liquidated in the case of a default?

What are these called in the automotive industry or do they have a term? Is there anywhere I would go to learn more about that and what the banks are doing in different markets with CDOs?

Quick note, in case you were wondering why your comment no longer appears: I've deleted the initial video and uploaded a slightly different version :)

Love your videos! More power!