Babson Capital Management Chairman and Chief Executive Tom Finke used his keynote address at a CLO industry conference event in New York Tuesday to present a takedown of criticisms of the collateralized loan obligation market, most notably a recent article that equated CLOs to the collateralized debt obligations and mortgage-backed securities that fueled the financial crisis of 2008.

Finke called the article in Fortune magazine “salacious” and “false advertising” in its description of CLOs as “pretty much like” the residential mortgage-backed CDOs that imploded six years ago, or of having a “curiously high” percentage of AAA-rated tranches of securitized loans from speculative-grade companies. The article blamed regulators for “slack government oversight,” and concluded that securitized investments in junk-status companies “aren’t safe investments. If the economy turns— boom, game over.”

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