By selling these, banks have brokered insurance contracts to the new holders of risk that in good times produce steady streams of income, but could require huge payouts if markets ever seize up.The second is the rating agencies, the new arbiters of credit risk.
"It's an unenforceable obligation".In good times, holders of government bonds tend to forget about the flimsiness of their claims.
Christopher P. Dixon, an analyst for UBS Warburg, said the exchange was good for the Disney company and not so good for the holders of the Internet shares.
But it's not unalloyed good news for holders of Isas and unit trusts.
Richard Stevens of Ernst & Young said: "This is good news for holders of business assets and a genuine encouragement to entrepreneurs.
The new rules are good news for holders of bank debt, particularly the highly subordinated capital securities and preferred securities that banks issue to meet regulatory capital requirements.
One way of dealing with it is to differentiate the quality of the goods that the holders of cheap and expensive tickets get.
Kissinger was supremely good at that; subsequent holders of the office have been less successful.
Ice cube holders work good.
While this may be good news for long-suffering holders of S&P 500 Index funds, the typical U.S. stock is not particularly cheap.
