Why the CLO Market Has Been Growing So Fast

The video discusses the Scielo market, which has grown significantly over the past decade, reaching over $600 billion. It explains why interest rates on traditional investments like US Treasurys are low, while Scielo offers higher returns, albeit with higher risks. The video highlights the potential dangers of investing in Scielo, as many companies have accumulated substantial junk-rated debt, risking a downgrade to the Triple C tier if the economy worsens.

How might the economy turning sour affect companies with risky loans?

What could happen to investors if companies with high levels of debt find fewer lenders?