4 ms·
Can you explain? If I know that I will recover less than expected if a counterparty defaults, I'm going to diversify my counterparties. That reduces moral haz
by whatok 11y ago
Can you explain? If I know that I will recover less than expected if a counterparty defaults, I'm going to diversify my counterparties. That reduces moral hazard.
- cmurf 11y agoI'm agreeing. Not taking haircuts encourages moral hazard.