We poor humble journalist types constantly struggle to explain complex stuff, but, every once in a while, someone or something comes along which brilliantly captures the inane opacity of global finance in a simple thought.
For me, the greatest part of the award-winning movie The Big Short is Margot Robbie explaining sub-prime financing in a bubble bath, drinking champagne and making copious use of expletives. How I long for the model and actress to explain collateralised loan obligation (CLO) structures. I am not arguing the humble CLO represents the next great bubble waiting to burst, but it is worthy of some note. CLOs share many of the same characteristics of the structures that brought down the US housing market and which, in turn, kicked off the global financial crisis - the very topic of The Big S...
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