"In response, the lenders are bundling more auto loans, equipment leases, and other kinds of debt into asset-backed securities."
"One sign of the robust demand is that investors looking for securities with relatively strong ratings and high yields have snatched up asset-backeds supported by increasingly exotic assets, including art from Rembrandt van Rijn and Andy Warhol, and internet protocol addresses."
“We are getting a lot of enquiries about esoteric securitizations,” said South, citing data center and solar panel securitizations as two examples."
https://finance.yahoo.com/news/great-bank-asset-sale-boon-190000089.html
This will certainly end well
byu/LarryStink inwallstreetbets
Posted by LarryStink
6 Comments
CDO’s are dog shit wrapped in cat shit moment 
I don’t get this.
Hey chatgpt explain this like I’m 5
Alright! Let’s break this down with a simple story.
Imagine you have a toy box full of different toys: cars, trucks, and dolls. Your friends really like playing with your toys, so you decide to make some toy packages to share.
1. **Bundling Toys**: You take some cars, trucks, and dolls from your toy box and put them together into a package. This is like what the lenders are doing. They are taking car loans, equipment leases (like renting toys), and other kinds of debt (borrowing toys) and putting them together into a big package called “asset-backed securities.”
2. **Strong Demand**: Lots of friends want these toy packages because they know you have good toys. Some friends even want packages with very special toys, like rare art toys or unique internet toys. These special packages are really popular because they are fun and valuable.
3. **Exotic and Esoteric Toys**: Now, some friends are asking for even more unusual toys, like ones from famous artists (Rembrandt and Warhol) or toys that are very technical (like internet protocol toys). “Esoteric securitizations” means making packages with these rare and unique toys, like data center and solar panel toys.
So, in short: People are putting together lots of different kinds of debt (like loans and leases) into packages and selling them. There’s a high demand for these packages, especially ones with rare and interesting assets, which people are eager to buy.
People don’t even remember what happened during 2016-2020, 2007-08 is soo long ago.
This is bullish. Banks are dumping the assets so they’re getting cash. In 2008 banks were holding the assets so when the value of the debt went down they got fucked. This is the opposite of 2008.
Someone eventually will get the bright idea to bundle credit card debt, so European investors can lose their wealth on US grocery bills.
Hell they can go ahead and bundle my debt into someone else’s I won’t be mad