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"There is a larger and deeper investor base, a bigger and more diverse pool of issuers, and a proliferation of technologies that allow information to be conveyed across the globe nearly instantaneously," said Matthew E. Kaplan, a partner at the law firm Debevoise & Plimpton.
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They suggest the creation of a consortium of issuers who could pool their resources to get access to sound financial advice that would be prohibitive for each issuer to pay for on its own.
In 2008 18% of issuers were rated Aaa.
In 2013 two-fifths of issuers were foreign, Commerzbank reckons.
But for adequate diversification, you need an array of issuers and maturities.
The proliferation of issuers has amplified the risks of hacking break-ins, an expert said.
In taxable bonds, it's not the economic health of issuers that's troubling investors.
"For a lot of issuers, it wasn't the cost of money.
Then there are tax-exempt issues available from tens of thousands of issuers.
The worst default rate is still 1981 where 13.0% of issuers got into trouble.
Last worry: calls, the right of issuers to force early redemption after interest rates have fallen.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com