US investors still sensitive to counterparty risk

Newton Cradle
Worries over issuer credit quality are still plaguing investors

How sensitive are investors to an issuer’s credit rating?

Keith Styrcula, chairman of the New York-based Structured Products Association: Investors continue to be, by and large, still sensitive to credit ratings following the Lehman Brothers default. Anecdotally, firms that received Troubled Asset Relief Program (Tarp) funds are seeing investors come back to structured products issued under their credit, but the primary demand continues to be US-backed guaranteed bank products, such as certifica

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