Posted: Thu Nov 29, 2018 4:22 pm
What a well-written, clear and sensible proposal! It would have my support if it achieves quorum.
I honestly don't know what is overly complicated about this. After 2008, I thought more people would have taken a modicum of interest in bonds, collateralized debt obligations (CDOs), rating agencies and liquidity crises. The key argument is pretty much that securitizing debt increases market liquidity with the caveats that strongly correlated assets (such as junk mortgage bonds in the United States) are not packaged together and tranched as low risk and that the securitization process is appropriately disclosed to stakeholders. It also seems like a very good idea to create a liquidity support programme, since nations are in general vulnerable to liquidity risk whether they'd admit to it or not.
I honestly don't know what is overly complicated about this. After 2008, I thought more people would have taken a modicum of interest in bonds, collateralized debt obligations (CDOs), rating agencies and liquidity crises. The key argument is pretty much that securitizing debt increases market liquidity with the caveats that strongly correlated assets (such as junk mortgage bonds in the United States) are not packaged together and tranched as low risk and that the securitization process is appropriately disclosed to stakeholders. It also seems like a very good idea to create a liquidity support programme, since nations are in general vulnerable to liquidity risk whether they'd admit to it or not.