The New Paradigm For ETF, Mutual Fund, Bond Fund and mREIT's Part 2
Summary
- Review of the potential effects of the post 2008 crisis paradigm shift on Mutual Funds, ETFs, Bond Funds and mREITS.
- Potential effects of the post 2008 crisis paradigm shift in holdings and the holders thereof.
- Potential effects of CDO, CLO and cov-lite holdings.
- Discussion of the post 2008 crisis paradigm shift in holdings, holders and operating environment which effect material adverse changes in market making and liquidity.
So I handed him my bottle
And he drank down my last swallow
Then he bummed a cigarette
And asked me for a light
And the night got deathly quiet
And his face lost all expression
He said, If you're gonna play the game, boy
You gotta learn to play it right
- The Gambler
- Review of the potential effects of the post 2008 crisis paradigm shift on Mutual Funds, ETFs, Bond Funds and mREITS.
- Potential effects of the post 2008 crisis paradigm shift in holdings and the holders thereof.
- Potential effects of CDO, CLO and cov-lite holdings.
- Discussion of the post 2008 crisis paradigm shift in holdings, holders and operating environment which effect material adverse changes in market making and liquidity.
So I handed him my bottle
And he drank down my last swallow
Then he bummed a cigarette
And asked me for a light
And the night got deathly quiet
And his face lost all expression
He said, If you're gonna play the game, boy
You gotta learn to play it right
- The Gambler
And he drank down my last swallow
Then he bummed a cigarette
And asked me for a light
And the night got deathly quiet
And his face lost all expression
He said, If you're gonna play the game, boy
You gotta learn to play it right
- The Gambler
CLO - The Shadow Banks Dirty Laundry?
CapitalOne ask's "What's In Your Wallet?" Ask not what's in your wallet? Ask "What's In My Fund?"
A reader comment:
To me the ETFs are just passive fund managers. They will not make active decisions, but the traders in the products will.
Before the 2008 crisis, the bulk of CDOs were collateralized by MBS (mortgage backed securities) ABS (asset backed security). Depository banks "securitize" loans they originate, often in the form of CDO securities, because this removes the loans from their books. Security buying investor banks replenish the dealer banks' capital while taking the risk.
Today, a new paradigm, because it is different this time. Activity in the leveraged loan markets surpassed the levels recorded before the crisis, as 55% est. of CDO consist of leveraged loans. Read that again and reflect.
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To me the ETFs are just passive fund managers. They will not make active decisions, but the traders in the products will.
There is no cost involved and it has been our experience that if you exert control (by unchecking a box of two) over your communications settings in your Seeking Alpha profile, your email inbox will not be polluted with one bit of Spam (not even the cured pork shoulder variety. Tasty even.)
As we are now a "contributor" at Seeking Alpha, our published articles, instablog and comments can be found here. Please continue to follow The Nattering Naybob here and at Seeking Alpha. We thank you for your support.
Comments