This is a good explanation. I’ve worked in the loan market for 30 years and it’s so important to explain these types of loans clearly. It’s important to tie them to the broader market to demonstrate how interconnected these markets really are.
@musiclover04452 жыл бұрын
Thank you, this was so helpful as I'm preparing for my job interview pray for me all you clean hearted people.
@iamevanclark3 жыл бұрын
Issuance of CLOs reached their highest level since 2005 this month (May 2021) - ratings agencies reviewing them for possible rating upgrades
@trick_treat4 жыл бұрын
this dude is the best teacher
@JaimeMontoya01 Жыл бұрын
How cool. Thank you. I am engineering the 007 bond , block 3B :)
@divisharma28523 жыл бұрын
I have seen tons of videos to understand the concept of CLO, but don't get much clarity. But the way you explain this is really amazing.
@10HSH8 жыл бұрын
Good explanation, I like the examples you mentioned.
@Karim7224014 жыл бұрын
loved the end, thanks man always great to listen to you, i am a french student in finance and you really helped me when i had to explained the securitization process in english. Thank you very much and of course make more videooooosss
@GrAcEvip6 жыл бұрын
Very well explained! English is not my mother tongue and finance is not my career field, but still, I understood it quite easily. Congrats!
@BC-vt8xj5 жыл бұрын
Becoming increasingly relevant at the moment.
@windbreaker53644 жыл бұрын
B C why?
@cryptofunded4 жыл бұрын
@@windbreaker5364 Just heard this wordon Bloomberg, Triple top in s&p monday might be BLOODY
@windbreaker53644 жыл бұрын
@@cryptofunded ??
@cryptofunded4 жыл бұрын
Wind Breaker ?
@windbreaker53644 жыл бұрын
@@cryptofunded I don't get it
@sumeetbhagwat55854 жыл бұрын
Excellent Explanation! Double thumps-up. Keep it up.
@wendyebanks11825 ай бұрын
Clear, concise and insightful. Thanks!
@AbbasHashmigcc Жыл бұрын
Just phenomenal! Thank you 🙏 the best CLO explanation ever !
@jonun895013 күн бұрын
fantastic teacher. Could have included how the valuation is done as well
@manishagoyal78839 ай бұрын
Very nicely and clearly explained. Thank you!
@neilcowmeadow6488Ай бұрын
Superb explanation - thank you
@Thedebsays5 жыл бұрын
Can you be my finance teacher? Awesome presentation, thanks for make it so simple
@ahmedtawfiq36253 жыл бұрын
@debjani mitra where is he now...?
@persnickytee4 жыл бұрын
Thanks for the simplified explanation of CLO
@rizzorepulsive77049 жыл бұрын
Sooo good. thank you so much
@udhayaraj28495 ай бұрын
Thanks mate.... Great explanation!
@LoisNerdyLane01 Жыл бұрын
Thank you 😭 Such a straightforward explanation. Much appreciated
@demolaj15 жыл бұрын
time bomb basically
@Silverhands4 жыл бұрын
How do you bet against it?
@shobhitmishra96275 жыл бұрын
Thank you sir for explaining this..
@UnkleRiceYo5 жыл бұрын
We all love Paddy Hirsch
@augustinearkoturkson21982 ай бұрын
Thank you so much
@MiguelSanchez-mo6mp3 жыл бұрын
I’m wondering if this is something similar to the housing crash of 2008. That’s the first thing I thought of.
@iancassie98404 жыл бұрын
I especially liked the pyramid of glasses explaining the trickle down economy
@vicenterivera694 жыл бұрын
LOVED the explanation!
@3ddon602 Жыл бұрын
Fantastic explanation! just curious how does John get paid and if its a percentage, typically what whould that percentage be?
@abhinavitsmebellamy4 жыл бұрын
Thank you, Sensei!!
@hidilip197514 жыл бұрын
Gud one once again, These videos present in such a simple manner . grt job !!!!!
@boysindabronx4 жыл бұрын
Awesome video, thank you!
@jiyoungyun74947 жыл бұрын
perfecto
@fb0797 жыл бұрын
JI YOUNG YUN if you want to know more watch the movie "the big short" it will explain and how this led to the 2008 market crash.
@jiyoungyun74947 жыл бұрын
thank you for the recommendations ! i will watch today
@oendrilasarkar90002 жыл бұрын
this is a good explanation. thanks :)
@samuelzachariah2357 жыл бұрын
That pen throw though hahaha
@adudeisthebomb4 жыл бұрын
The Atlantic published an article about the widespread adoption of these and how they are literally a time bomb in the time of corona
@Alexandrius_Caesar3 жыл бұрын
Great article. It’s what’s piqued my interest in the first place.
@winnielu5502 Жыл бұрын
A quick question, how does John make a profit here? From interest rate difference?
@Riverdale27014 жыл бұрын
hahaha :D the ending is hilarious...
@sjutra123452 жыл бұрын
On that basis, JPM has no risk since he is making money on the fees but does not lend its own capital?
@jinglee18907 жыл бұрын
very clearly explain...
@umairjafri563010 жыл бұрын
Thanks! this was a great video.
@sandeepr80655 жыл бұрын
Very good sir
@kingtigercrownestate91022 жыл бұрын
If J.P.M. immediately sells it's loans out to other people HOW does J.P.M. benefit or make any kind of a profit?
@bejoysen44684 жыл бұрын
Wouldn't the loan originators (JPM) benefit from loan defaults b/c they already sold their loans to the securitizer (John), so they were paid for worthless securities?
@maqnthreez4 жыл бұрын
Bejoy Sen JPM generates profits from charging fees, servicing the debt and selling the portfolio (loan)
@BurlakaVS9 жыл бұрын
Great job!
@jarahmacfarlane11184 жыл бұрын
This guy is great
@AllYouWantAndMore2 жыл бұрын
Ok, hold on. So JPM gets interest on the loan to the burger guy. JPM also has an incentive to breakout the loans into pieces that John can buy to put into the CLO. Then Investors give John money to earn a return on the CLO. John earns a fee for managing the CLO from those investors. So when the interest from the burger guy is paid to JPM, does JPM give part of that related to John's piece of the CLO to John who bought that piece? Or does John become less responsible as it relates to his piece by way of some obligation to JPM? What I mean is, did John buy the piece from JPM or does he own an option on that piece, which becomes less expensive as the loan is repaid?
@andrewm74958 жыл бұрын
very good
@hrvojemikulcic70744 жыл бұрын
Zašto pojedinac/ica ne donese zlatnu ili srebrnu polugu kupljenu kod privatnika (privatni sektor) ne donese u banku kao polog za trajni nalog nizih ili visih rezija!?
@inawe291110 жыл бұрын
Great video!
@TaylorGIrard114 жыл бұрын
Hey. How are we looking now?
@nancyquiroga94168 жыл бұрын
terrific!
@Jamiiweb33 жыл бұрын
Can someone tell how to withdraw dai in barnbridge
@paulomoniz73267 жыл бұрын
I have an idea for a video, you should make it! Many countries/companies are doing "RoadShows" to sell their debt. Can you talk about it, pls?
@thegoodraj13 жыл бұрын
awesome PS Wall Street Journal, you look a lot like M Douglas...
@hailo18845 жыл бұрын
really successful rebranding strategy, from CDO to CLO. Something that the Japanese banks will find out soon; that they are getting the exact same product, just with a different name...
@seanknowles79873 жыл бұрын
Due to the measures taken by the pandemic, CLOs will be one of the main problems aiding in the economical decline which seems more of the case now that 60% of businesses have closed. The issuance of these bonds are on par with the Mortgage CDO bonds. In addition to that the Fed printing too much money, social upheaval etc. By this year we will see. If it does then the entire world economic structure changes and CBDCs/digital currencies take over. Only thing that may happen to deviate form this is CBDCs help to replace fiat with airdropped funds but even if that happens it doesn't negate the fact that economical decline can still ensue. If it goes this route the IMF, World Banks, Central Banks take over nations and lead to higher dollarization and control. Potential draconian measures to utilize said tokens. SO, even if a fall is mitigated and fiat is replaced with CBDCs the implications of Central Banks taking over are numerous . Oh and I believe a war this decade will happen. Its not guaranteed but the correlations are numerous. Even astrologically (if you believe in those sort of things)
@0musing14 жыл бұрын
Goood oooonnnneee!!!!
@bryanh82924 жыл бұрын
And back to square one in 2020
@waste775 жыл бұрын
You mention that if everyone is paying their interest through their loans,.... who is everyone? the ones that paid the Fund manager a portion of the 10m? and why do they need to pay interest if they gave their own money to the fund manager
@anthonyb91964 жыл бұрын
waste77 the people making monthly payments on their mortgage, credit cards, auto loans etc
@timothymcglynn193529 күн бұрын
Hi 👋
@amalekited14 жыл бұрын
haha +1 for the ending
@rio2ug4 жыл бұрын
Sounds more like some bizarre ponzi scheme!🧐
@joehui65804 жыл бұрын
After 10 years. Few black swan events happened. We are yet witnessing another crisis.
@scottc5744 жыл бұрын
Jeez....Wall Street at it again. They're not worried....they'll get bailed out.
@_thomas_xc4 жыл бұрын
2020 lol
@nathanielsingleton63024 жыл бұрын
How is this Ponzi scheme legal???
@luisbravo6554 жыл бұрын
Who's watching this during 2020 recession?
@md991free12 жыл бұрын
I think the CLOs market is having a revival again. It was dead meat after the financial crisis of 2008
@icutad212 жыл бұрын
wait i didn't understand that middle bit about john's capital structure. IS there another party involved that's paying for the right to some of that interest from the clo? ( a wine glass?) who's paying those rating related interest rates?
@macforme5 жыл бұрын
perhaps the borrowers?
@hmmm50634 жыл бұрын
I think John / the CLO is paying the interest, prob in the form of different classes of preference shares. He gets the money from what comes out of the bottle and splits it up.
@timgoldshmit1037 жыл бұрын
How to short this bs?
@Silverhands4 жыл бұрын
Did you find out?
@k.chriscaldwell41415 жыл бұрын
A more sophisticated pyramid scheme atop of the Khazarians' grift-machine. _"Ignorance Is Strength." I'm weak._