- The newly government-created post-LIBOR short-term private debt market created an implied government guarantee of short-term corporate debt.
- This government overreach leaves taxpayers to foot the cost of guaranteeing corporate short-term borrowing.
- There ought to be a reliable private-sector marketplace that returns the bill for credit risk protection to corporate borrowers.
- The replacement of deeply flawed LIBOR ought to be a better-designed private-sector system of credit risk transfer.
For further details see:
Post-LIBOR Short-Term Debt Markets - Government Overreach