1.   By selling debt now, issuers avoid the possibility of higher rates later on.

2.   The federation said loss ratios began falling more recently, primarily because sales of credit insurance were increasing and insurance issuers were avoiding high-risk customers.

3.   The specialty issuers have largely avoided the effects of record personal bankruptcies that have sent credit card loss rates at some banks soaring.

4.   In this manner, the issuer avoids the need to issue a prospectus for the bond issue.