Hello, this is Fisher in Best Fisher 2008 plunger in the previous video Until it starts Difficult for ordinary people like us to recognize. In one part of American finance Insolvency and bubbles were occurring Lehman Brothers went bankrupt Only after the financial crisis It is the inside of the world that has been revealed It was a derivative called CDO I explained Also as of 2019 With the past CDO in the US Called CLO with a similar structure Issue amount of financial instruments To the level of the 2007 financial crisis Soaring figure is observed Analyze it How to respond I explained Because it’s quite important If you haven’t seen the last link on the card and video And at the bottom of the video description I’ll give you a link Please check Current from previous video CLO issuing volume is skyrocketing Being the underlying asset of the CLO BB- less than negative credit companies Real estate and machinery sales receivables In the situation where collateral is insolvent Let me explain Many people in this video If you have any additional questions, please leave a comment. Today about that part Let me explain further The first thing you were curious about was “Is the financial crisis coming?” Or “Are you selling all your stocks?” Is called If you look at this, you will definitely understand First of all, I’m going to show you Before the 2007 financial crisis Real news articles A derivative financial instrument called CDO caused the problem Before 2007 At this time, S & P including the US Federal Reserve If a house in the US falls in price, Based on US mortgage loans CDO can collapse I’ve given you numerous warnings. The key to these warnings is In 2005 or 2006, US home prices are solid It doesn’t matter Future US housing prices If you fall below a certain level As the CDO broke in a chain It can cause economic crisis Is to pay attention to this I know what a CD is Hard to know what a CDO is Ordinary people like us The warnings from US Federal Reserve personnel and financial institutions Because I don’t know what it means The decline in US housing prices, an indicator that is released I couldn’t prepare. But if we did Your Fed like now and Only the agency warns that the US CDO is at risk I could see I’m showing you the US housing price index In the middle of 2007 When US housing prices start to plummet We sell stock Whether to increase the share of government bonds Something would have been done You may think it’s too bad. But of course at the time, Unfamiliar CDO inside It was hard for the public to know financial products. What will happen next? I’m showing you the news If you look, it will be the answer. Looking at the latest news Bank of Korea, Bank of Japan, including the Fed U.S. payment bank About the dangers of the government CLO I’m warning you This is similar to 2005 Right now, the interest rates of US credit companies Profit is not so badly It’s okay If bond yields rise and economic slowdown U.S. Low Credit Companies Raise Funds If you have a difficult environment Is that the CLO can go bankrupt. The 2005 Banks and Institutions I showed you earlier News that warned of the dangers of the CDO Federal Reserve and International Banking as of 2019 Bank of Korea warns of CLO risks If you look at this, What months are you going to be here or this year? Would have answered the question If I do it right away or after a few months When the financial crisis comes If you can fit exactly I won’t do this here. Invest all your property in futures options You’ll be having a Maldives in Mojito right now. CDO overheating in 2005 US house prices Falling below a certain price is dangerous Like this warning Even in 2019, even for CLO Bankruptcy of US Low Credit Companies To increase the risk So instead of having a problem So American credit companies Corporate bond rates soar Or the profits will decrease Issued mortgage loans When we were not able to repay It’s going to be a problem, so be prepared. So as an indicator of that What I explained was a high yield spread. High Yield Spreads is a Corporate interest rate minus government bond interest rate Now for low credit companies Because it is a situation that a lot of investment Only 4% of government bonds No difference But like 2007 A sudden crisis When financing of low credit companies is a problem Because corporate interest rates soar High yield spreads soar. This means that low credit companies To raise funds Have to pay high interest rates Because nobody wants to invest that much Companies that are hard to finance That a bankruptcy is bound to fly So like 2007’s of pictures High yield spreads soared To American credit companies If you hear news like this is happening CLO can cause bankruptcy We have to manage risk. So after a few months Or will there be a financial crisis this year? I don’t know this And a financial product called CLO There’s definitely a problem with Because the economy and stocks are climbing the wall of insecurity There are plenty of sections for the stock market to rise in the future. So should I sell all my stocks? If you ask like this, Has been agreed to such as the US, China and Europe Stocks may rise as stimulus comes out At the moment, the crisis of US credit firms Since it is not observed as an indicator You don’t have to sell all your risky assets. But I don’t know at what point We know this If you look at the indicator, you can respond. Next was the opinion that the CLO is safe. Is there really a risk Indeed, the CLO has lendered banks Collateral Loan This is called Senior Depending on the likelihood of repayment Determine your own rating from AAA to Unrated Form a portfolio to spread risk It’s a derivative of a structure that reinforces overall creditworthiness. That the CLO is not dangerous The grounds for claiming are guaranteed A mortgage bond is called a trench 59.3% of the structure A grade of their own award The sum above is over 70% Safe and secured in the past The default rate of CLO is Safe because it was quite low I make this claim But as I explained in the previous video Recently, the senior company issued Debt to Average Profit Ratio More than five times From the LBO in question Without investor protection Loan rate exceeds 80% And the actual recovery rate 61%, etc. In the past, CLO Insolvent due to a recent surge in volume The problem is that Is the CLO really safe? The problem with Isn’t it too hard to listen to it? We are a low credit I actually visit and do due diligence Not a lender I’m not the one who sets the standard for the loan. Or the collateral of many American low credit What percentage of actual repayment is possible I’m not an appraiser. And that credit enterprise real estate Machinery account receivable If the collateral is worth less The CLO is bankrupt like the old cdo This also like us It’s hard for the public to evaluate But there is one thing that is certain Korea Evaluation Agency Division Unparalleled scale Even global intelligence agencies with intelligence 2007 CDO problem Is the fact that it was not If you look at the news article Despite US subprime mortgage insolvency Over CDO trench A grade Mortgage loans are highly stable I told her there was no problem. Problems as of 2019 CLO trenches above grade A High safety, no problem at all It sounds so similar to the evaluation It’s not just because of my feelings. Also, in 2007, credit rating agencies benefited Because much of it came from CDO’s evaluation This rating agency is not an investor Represent the position of the agency requesting the evaluation The controversy has grown. And even now, that practice cannot go away. Where to pay a credit bureau Because it’s an agency that asks for a credit rating. In short, with superior intelligence These credit rating agencies can even count due diligence It’s a reality that you can’t even trust it. From the Federal Reserve to the Bank of Korea and the International Settlement Bank To warn the CLO Even if you’re a non-specialist or a domestic expert like us CLO is a safe danger. It’s not meaningful to discuss Prepare for risk or not Because you have to keep your own money As much as each person thinks Acting is only the answer If so, is the CLO dangerous? The answer is not dangerous. And some CDS and CDO are the same There was a comment that asked me a question. CDS measures the default risk of bonds issued by It’s a credit derivative of a guaranteed transaction, which is totally different from CDO. Please don’t get me wrong Finally, high yield spread I constantly monitor in the video We will follow up on the risk. But be especially careful I’m showing you the high yield spread Like 2012, 2016 and 2018 High yield spreads may cause a slowdown If there is a problem, it will bounce first Because bonds with low credit ratings are risky assets If an economic slowdown or crisis is expected Because investors are recovering funds directly from risky assets. But every time a high yield spread pops up like this I’m afraid of the CLO going bankrupt. Selling all risky assets is not desirable Looking at other economic indicators Actually, what happened in that section Could not be resolved The financing of low credit companies in the US Will it be difficult? And various economic indicators You have to judge together. If you haven’t watched the video all the time, When the high yield spread bounces a bit, I sold everything There’s no crash. in It may sound wrong Nothing else If you invest your precious assets It’s a rough habit and laziness. I only look at one video and throw away everything Steadily and sincerely monitoring economic indicators Respond to change Even so hard It is because the financial market is hard to make money If you liked today’s video Subscriptions and likes are exactly!!! Press it I would like to ask you to watch