Posted on 03/01/2025 1:32:51 PM PST by E. Pluribus Unum
Wall Street expects to sell more than $335 billion in asset-backed debt this year. Remember that conference in ‘The Big Short’? It just drew a record 10,000.
The convention halls at the Aria Resort & Casino on the Las Vegas Strip were packed for four days this past week with bankers and their clients, in uniforms of Italian sportscoats and office sneakers. They fist bumped greetings as they strode to their next meetings, giving off the feel of a joyous reunion.
The hotel’s sky suites were booked. Citigroup bankers set up more than 900 meetings. A panel on data centers was so popular, attendees sat on the floor. Bank of America arrived with clients it had just taken on a ski trip to Park City, Utah.
At 10,000 people, it was the biggest ever SFVegas—the annual gathering for the structured-finance industry. The last time it boomed like this was 2006 and 2007. Mortgage bonds were selling like crazy, and this crowd was flying high.
Then these financiers crashed the U.S. economy and sent the global financial system to the brink.
Now, structured finance is back.
Wall Street is once again creating and selling securities backed by everything—the more creative the better—including corporate loans and consumer credit-card debt, lease payments on cars, airplanes and golf carts, and payments to data centers. Once dominated by bonds backed by home mortgages, deals now reach into nearly every cranny of the economy.
“It’s amazing to me,” said Lesley Goldwasser, a managing partner with GreensLedge, a boutique investment bank that focuses on structured credit. “I have watched this with absolute wonder.”
New U.S. issuance of some of the most popular flavors of publicly traded structured credit hit record levels in 2024 and are expected to surpass those tallies this year, according to S&P...
(Excerpt) Read more at wsj.com ...
Bingo.
And blame Chuck Schumer.
Considering no one went to jail, and the big financial institutions got bailed out by the taxpayers, I’d say they learned nothing and will do it again.
Don’t forget the semi permanent damage done to our economy as a result of the ‘08 crash.
Bernanke was trying to fight off a depression level event.
One reason for the great depression was bank failures.
The banks did not have enough physical dollars to give to customers wanting to get their cash out.
Almost happened in ‘08.
So, Bernanke cranked up the printing presses.
Well, here we are 5 president’s later, and the presses are still running at full speed.
It collapsed under biden.
“… consumer credit-card debt…”
Where can I get me some of them? Are they betting consumers will make enough payments at 30% interest to make up for the total write-off when they go bankrupt? There isn’t even anything to repossess.
Of course not!🙄
greed is good
Speaking of idiots. A poster who insults another poster, while not knowing a thing about him, would certainly qualify in anyone's book.
So calling Clinton and Reno idiots is insulting a poster?
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