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Non-Tech : Income Investing -- Ignore unavailable to you. Want to Upgrade?

To: brehm233 who wrote (52123)	12/31/2025 2:46:11 AM
From: Privately	3 Recommendations Recommended By brehm233 CusterInvestor MRothaus1 Read Replies (1) \| Respond to of 52143

Re: CLO owner Eagle Point Credit Company (ECC) has announced they will be redeem Do you consider EIC same as ECC? I recognize that they are very different companies focused on different "slices", but both are primarily in CLOs. Again, it may just be my paranoia, but if one part of the CLO tower starts to crumble, I think the ensuing panic may well take them all down. The huge growth in the total amount of CLO products out there, including all the new stuff being introduced over the last couple of years has made that tower frighteningly tall (IMHO) with a shaky foundation based on the questionable quality of much of the new stuff that has been trotted out with CLO labels to make it all sell. The mantra seems to be "Its made from garbage, but we slice it up in a special way to make it not seem like garbage". I can't point to a specific number or report that has me thinking this way. Just a feeling I get from reading a wide variety of stuff over the last year. A lot of "experts" have been talking about how safe CLOs are - which got me looking at some of the things "experts" were saying about CDOs before the financial crisis. Too much sounds eerily the same to me, but I am admittedly paranoid. It just seems to me that if so many people have to give repeated presentations about "oh, it is really safer than it appears" and "it will certainly be different this time" that maybe it isn't (in either case). I could be totally wrong (I have been many times before) and I may be leaving some money on the table by buying other things that pay a little less, but if there is a panic or even a significant correction, I think I will he happier without CLO risks.