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How does this financing model differ from issuing a collateralised debt obligation?

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by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Jun 6th, 2010 at 06:12:33 PM EST
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It's backed by the full faith and credit of the government?

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by Carrie (migeru at eurotrib dot com) on Sun Jun 6th, 2010 at 06:13:57 PM EST
[ Parent ]
It's redeemable/retirable at the option of the issuer - which makes it a credit instrument analogous to a redeemable share.

So it's not a debt instrument, and it's not collateralised either.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Sun Jun 6th, 2010 at 07:33:12 PM EST
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