You would have thought that after the global financial crisis of 2018 some if not many lessons were learned and acted upon. Sadly, you'd be wrong. The finance industry (large parts of which serve no productive purpose) simply cannot help itself. The prevailing mantra remains "greed is good".
Take the latest risky financial instrument, the collateralized loan obligation (CLO). You may remember its cousin, the collateralized debt obligation or CDO that played such a significant role in the 2008 collapse. The CLO is even riskier than the CDO, relying on a much narrower spread of debt obligations.
The article below discusses these and another dodgy intrument, the LOBO, which is giving grief to local authorities in Britain, and provides enough detail to alarm even the most sanguine among us.