SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Derivatives: Darth Vader's Revenge

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Michael Friesen who wrote (826)3/24/1999 10:32:00 AM
From: Henry Volquardsen   of 2794
 
Hi Michael,

long time, no chat.

The simple answer is the free market. The lenders give the go ahead on who they will lend to, whether it is the credit committee of Citibank, a Vanguard money market fund or you and I making a decision to buy commercial paper or a CD from a bank. As far as who checks that Joe's Construction can't get borrow at the same rates General Electric, nobody checks. If someone wants to lend to a presumably lower quality credit at the same rates as GE that is their business. Most of the market will demand a premium for the lower credit and these supply/demand factors will create the spread.

Henry
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext