02-23-2018, 04:31 AM
Just as a point of reference.....junk bonds caused the '87 financial crisis and recession. Today, they are a HUGE and VALUABLE part of economic growth, more commonly referred to as "high yield". IMO, this is an identical story to CDO's and CMO's blamed for the mortgage crisis.
You have to actually understand how regulation works. It is, to oversimplify, based on risk-adjusted values. And when your risk models are junk with new financial instruments....
You have to actually understand how regulation works. It is, to oversimplify, based on risk-adjusted values. And when your risk models are junk with new financial instruments....
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