Tim goes through the markets and their weekly performance. The past week we saw almost every global market start to implode. We had the Dow Down -12.36% S&P Down -11.49% Nasdaq -10.44% Gold -3.57% Silver -10.19% Bitcoin -11.9% coming in at $8,500 many of the alts down 20% or more 10 Year US Bonds 1.163% 30 Year US Bonds 1.684% 3 Month US Bonds 1.298% WTI Oil price -16.24% at $44.76 Since January, Tim’s Put Options are up 181%. Of all the potential Black Swans, the one that next to no one is talking about is the Collateralized Loan Obligations. It is a derivative of underlying corporate debt. Tim and John get into how this corporate debt is mostly speculative grade. That means pension funds would not invest in them. Still, with some rating agency touchup, they can rate over 50% of the 70% speculative debt as AAA, a rating that is greater than most countries. The Bank of International Settlements had meetings on the 26th and 27th of February. These were emergency meetings where they discussed the potential problems coming up in Collateralized Loan Obligation markets. It was by far their primary focus. Not Market collapse, bond collapse or commodities crashing. No, their focus was on the CLO market. Tim and John also go through who has the most significant exposure to CLO’s and potential risks coming in these markets. Another market that uses CLO’s is Real Estate, and the underlying debt is now being issued into RE CLO’s.