system
A chat on subreddit /r/wallstreetbets
human
I mean the majority of these loans are BBB, this pretty common knowledge. The fear is that they get downgraded when the economy slows, and big institutions are forced to dump them. Price will plummet without buyers. The market for CLOs is really thin, and a credit crisis would just lead to even thinner liquidity, which would really put a lot of selling pressure on them

gpt
I think the real fear is they're not BBB to begin with...