I wouldn't worry about it. For every 1% they pay you, they're lending the same money out a half-dozen times at 3-4%.
The average rate in the US is currently .6. Bank investors get antsy at .8 (prior to 2008 .9 was considered the line).
It led to the 2008 crash but they learned nothing.
In no way does a bank holding CLOs on their balance sheet validate the idea that they are loaning out their deposits 6x. That simply doesn’t happen with well run banks and people espousing that it does largely don’t understand banking.
I’m just pointing out that doing stupid financial shit that is effectively the same as that kind of over-leveraging us hardly new, nor raised many eyebrows.
Banking trades will seek the most ways to make money possible. Before CDOs were the poison they are today they allowed 50x effective leverage