The Financial Crisis was precipitated by toxic "junk" loans being bundled up with other loans and labelled as AAA-rated securities giving high yield.
Colateralized debt obligations CDO's are about to revisit the world in the form of colateralized loan obligations CLO's.
The irony is they are effectively the same beast with a new name according to the latest Max Keiser report.
My local council bought some toxic securities before the last financial crisis and I heard it cost them $80 million. Likewise, pension funds around the world bought them, other councils, school boards, etc etc.
This time around, the "high yielding" CLO's will probably, inevitably, collapse taking the retirement funds of the little people.
Apparently, as much as $75 Billion of this toxic crap are going to be sold wherever, to whoever in the next year. I hope Australian councils, superannuation funds are wary.
