So what is the need for "John" or the CLO? Why can't the bank provide the "syndicated" loan directly to the investor? Is the primary reason to work around the bank's capitalization requirements because it is gov't regulated?
With those glasses, you're the spitting image of Leslie Howard in Pygmalion ... but Henry Higgins never had a magic whiteboard that explained it all to us Doolittles. Thank you again, Paddy.
Could you explain the "syndicate of lenders" in more detail? Is it like a collateralized ____ obligation, where certain lenders can take precedence in when they get paid back?
