[missedthecue]

There would have to be a lot more insured CLOs to represent systemic risk. The total nominal amount of CLOs is just not great enough to cause a systemic collapse.

If you look at what the other guy said in this thread, taking WFC as an example, they have ~$2T in assets, and $27B in CLOs. They could lose every dollar in CLOs at once and the firm would still be fine.

There are certain smaller companies and brokers that deal in CLOs that would not be having a fun time if CLOs went belly up as a whole. The banking system would be fine. There is simply not enough of that paper out there to pose a systemic threat.