Still "winning" .......

[From Ashes To Glory 2]

Some of the posts on Herd Nation reminds me of some of the idiots on here who bragged about the solid economic growth under Dubya ..... right before the Great Recession began.

Leveraged loan growth sparks concerns about the next financial crisis

Former Fed Chair Janet Yellen and other big names in the financial regulatory space are expressing concern over the systemic risk of leveraged loans." Former Fed Chair Janet Yellen and other big names in the financial regulatory space are expressing concern over the systemic risk of leveraged loans.

Lenders will originate leveraged loans to companies looking to finance large transactions, such as a merger. Those lenders then bundle those loans into collateralized loan obligations, which are shopped and traded among investors as securities." Lenders will originate leveraged loans to companies looking to finance large transactions, such as a merger. Those lenders then bundle those loans into collateralized loan obligations, which are shopped and traded among investors as securities.

[...]

An August report from Moody’s said that leveraged finance is also suffering from deteriorating credit quality. Moody’s added that leveraged loan recoveries would likely fall to 61% during the next downturn, compared to the average recovery rate of 77%, citing a growth in the number of lower-rated borrowers and changing preferences for leveraged loans over high-yield bonds.

Yellen recently told the Financial Times that she has seen a “huge deterioration” in lending standards in the $1.3 trillion market for leveraged loans, which has only expanded since the financial crisis.

“If we have a downturn in the economy, there are a lot of firms that will go bankrupt, I think, because of this debt,” Yellen said. “It would probably worsen a downturn.”" “If we have a downturn in the economy, there are a lot of firms that will go bankrupt, I think, because of this debt,” Yellen said. “It would probably worsen a downturn.”

https://finance.yahoo.com/news/leve...l?source=post_page---------------------------

 

[Raoul Duke MU]

 

[raleighherdfan]

Some of the posts on Herd Nation reminds me of some of the idiots on here who bragged about the solid economic growth under Dubya ..... right before the Great Recession began.

Leveraged loan growth sparks concerns about the next financial crisis

Former Fed Chair Janet Yellen and other big names in the financial regulatory space are expressing concern over the systemic risk of leveraged loans." Former Fed Chair Janet Yellen and other big names in the financial regulatory space are expressing concern over the systemic risk of leveraged loans.

Lenders will originate leveraged loans to companies looking to finance large transactions, such as a merger. Those lenders then bundle those loans into collateralized loan obligations, which are shopped and traded among investors as securities." Lenders will originate leveraged loans to companies looking to finance large transactions, such as a merger. Those lenders then bundle those loans into collateralized loan obligations, which are shopped and traded among investors as securities.

[...]

An August report from Moody’s said that leveraged finance is also suffering from deteriorating credit quality. Moody’s added that leveraged loan recoveries would likely fall to 61% during the next downturn, compared to the average recovery rate of 77%, citing a growth in the number of lower-rated borrowers and changing preferences for leveraged loans over high-yield bonds.

Yellen recently told the Financial Times that she has seen a “huge deterioration” in lending standards in the $1.3 trillion market for leveraged loans, which has only expanded since the financial crisis.

“If we have a downturn in the economy, there are a lot of firms that will go bankrupt, I think, because of this debt,” Yellen said. “It would probably worsen a downturn.”" “If we have a downturn in the economy, there are a lot of firms that will go bankrupt, I think, because of this debt,” Yellen said. “It would probably worsen a downturn.”

https://finance.yahoo.com/news/leve...l?source=post_page---------------------------

I thought Trump inherited this great economy from Obummer. Just ask Greed and Dtard.

You mean a downturn in the economy means some will go bankrupt because they are over leveraged? Shocker.

 

[extragreen]

I thought Trump inherited this great economy from Obummer.

That's exactly what happened. idiot

 

[From Ashes To Glory 2]

I thought Trump inherited this great economy from Obummer. Just ask Greed and Dtard.

You mean a downturn in the economy means some will go bankrupt because they are over leveraged? Shocker.

Actually quite a few more than what would be expected with an economic contraction certainly belies unhealthy economic activity:

"Moody’s added that leveraged loan recoveries would likely fall to 61% during the next downturn, compared to the average recovery rate of 77%, citing a growth in the number of lower-rated borrowers and changing preferences for leveraged loans over high-yield bonds."

 

[19MU88]

I love it when libs predict the future. Reminds me of November 2016

 

[Raoul Duke MU]

I love it when libs predict the future. Reminds me of November 2016

Moody's is liberal?

 

[raleighherdfan]

I always find it interesting reading and seeing former Fed members (like Yellen) point out the ultimate failures of their own policy initiatives.

 

[Raoul Duke MU]

I always find it interesting reading and seeing former Fed members (like Yellen) point out the ultimate failures of their own policy initiatives.

Can you please cite the Obama Administration policy that forces high risk leveraged loans and CLO's on Wall Street? Thanks in advance. Also, a link to the Trump Administration advocating for rescinding the policy that doesn't exist.

 

[raleighherdfan]

Can you please cite the Obama Administration policy that forces high risk leveraged loans and CLO's on Wall Street? Thanks in advance. Also, a link to the Trump Administration advocating for rescinding the policy that doesn't exist.

Shit. Who said anything about "forcing" or "rescinding" anything? When you have $trillions in "printed dollars" (ala zero interest rates and QE 1-4), that money is going to be leveraged, re-leveraged, and re-leveraged again. It's how the debt and economic machine works. It was inevitable. Its the only way to soak up the liquidity. I've told you a million times, money always follows and goes looking for "returns". When the good returns dry up, continued leverage for higher risk is the next step, especially when excess liquidity still exists. You going to deny the Federal Reserves role in creating, and allowing banks/investors the opportunity to use the capital that was printed for their use?

Are you going to deny Obummer didn't take credit for turning around an economy that was built on the ability of the FED to print more liquidity, buy up bad debt, with printed dollars (more debt), and pump more $$ into investment firms looking to benefit from new higher leveraged debt risk (economic growth)? It was inevitable this was going to happen. No way Obummer was going to rescind anything while the market was rising and no way Trump is going to rescind anything while the market is rising.

That's what made Obummer a somewhat unique Prez IMO. He bitched and moaned about big banks & corporations, but was pragmatic enough to know, at the end of the day, they were going to make him richer long term. No need to screw them too hard. Use the bully pulpit enough, promote a new regulation here and there, to make the serfs think he was on their side; but sure as shit, still listen to Goldman Sachs because the economy is built on their survival.

 

[Raoul Duke MU]

Shit. Who said anything about "forcing" or "rescinding" anything? When you have $trillions in "printed dollars" (ala zero interest rates and QE 1-4), that money is going to be leveraged, re-leveraged, and re-leveraged again. It's how the debt and economic machine works. It was inevitable. Its the only way to soak up the liquidity. I've told you a million times, money always follows and goes looking for "returns". When the good returns dry up, continued leverage for higher risk is the next step, especially when excess liquidity still exists. You going to deny the Federal Reserves role in creating, and allowing banks/investors the opportunity to use the capital that was printed for their use?

Are you going to deny Obummer didn't take credit for turning around an economy that was built on the ability of the FED to print more liquidity, buy up bad debt, with printed dollars (more debt), and pump more $$ into investment firms looking to benefit from new higher leveraged debt risk (economic growth)? It was inevitable this was going to happen. No way Obummer was going to rescind anything while the market was rising and no way Trump is going to rescind anything while the market is rising.

That's what made Obummer a somewhat unique Prez IMO. He bitched and moaned about big banks & corporations, but was pragmatic enough to know, at the end of the day, they were going to make him richer long term. No need to screw them too hard. Use the bully pulpit enough, promote a new regulation here and there, to make the serfs think he was on their side; but sure as shit, still listen to Goldman Sachs because the economy is built on their survival.

So is the fact tons of cocaine is produced it is going to be sold an affirmative defense for selling cocaine?

 

[raleighherdfan]

So is the fact tons of cocaine is produced it is going to be sold an affirmative defense for selling cocaine?

Take it up with Congress. CLO's are legal...cocaine isn't. How else is a idiot like AOC going into Congress as a "broke" bartender and come out worth $millions.

 

[Y.A.G Si Ye Nots]

. How else is a idiot

“An” idiot, ITT.

 

[raleighherdfan]

 

[extragreen]

.