1.   Credit quality has deteriorated rapidly in recent months, both for Marketable debt and for bank loans.

2.   The principle underlying the programs was that these agencies could better assess and charge for credit quality than individual investors.

3.   Eurosterling bondholders tend to prefer protective covenants that prevent a deterioration in credit quality, whereas eurodollar bondholders prefer the put-at-par option.

4.   As noted, eurobond issuers need to be of good reputation, whether in terms of credit quality or name recognition.

5.   US holdings of FRNs increased after the market collapse as US investors were generally happier with the credit quality of the names involved.

6.   One reason is the low credit quality of US corporations following the wave of takeovers and leveraged buyouts and associated issues of junk bonds.

7.   Issues hence no longer meet the high standards of credit quality required by the eurobond market.