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A vital part of risk management, Mr. Lorenz said, is to avoid any issuer that might default.
Any issuer that enjoys a high credit rating because of implicit or explicit support from the government could be subject to downgrades if the government's rating fell.
Corporate-bond investors have pummeled any issuer with a real or imagined taint of accounting trouble.
Any issuer seeking a rating would pay a percentage of the dollar amount of the issue into a central fund, to be administered anonymously by Moody's, S&P or a consortium of rating agencies.
Any issuer should be able to confirm that the appropriate recipient cashed the money order.
Similar(52)
For private money markets to work effectively, users must have the ability to promptly and punitively punish (by switching to other currencies) any issuers abusing their customers.
"A smarter strategy for the C.F.P.B. might be to drop the amendment and the associated legal battle but require any issuers that charge fees before the account is opened to send a notice that clearly shows consumers how much their credit card will cost them".
While neither American Express nor Discover have disclosed any issuers looking to make the switch, the push is on at both firms to convert the Visa/MasterCard unfaithful.
Rest assured that an issuer does not float any security that is a mathematically bad bet.
And the companies tend to limit the amount of risk they have to any one issuer.
The company has more junk bonds outstanding than any other issuer of high-yield debt, according to Credit Suisse First Boston.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com