1/ "for a so-called "fallen angel" to qualify, it would have had to be rated "at least BBB-/Baa3 by two or more [credit agencies] as of March 22, 2020," the Fed explains. And, that firm "must be rated at least BB-/Ba3" at the time of issuance." https://fortune.com/2020/04/09/fed-buying-junk-bonds-corporate-america-federal-reserve-coronavirus/ …
2/ 25iQuiz: Who said:
"The past is always triple-A. We can all remember what the past was. But if we try to make the future triple-A, we have no future. The future is always single-B.”
Is a "fallen Angel" bond better than one issued originally with a premium for credit risk?
3/ "In 2007 rating agencies gave almost 1,300 financial instruments triple-A ratings. They never legitimately deserved triple-A ratings, but the rating enabled the leverage that created the problem. People got comfortable with the rating rather than doing work on credit quality.”
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