Though Moody’s Investors Service says its possible downgrades of banks may have substantial impact on variable-rate demand bonds, outside experts are skeptical of this.

VRDBs are long-term securities with short-term interest rates because investors can withdraw their money with little notice. Banks guarantee the VRDBs.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.