Does The Sec Require A Debt Ceiling Or Floor

Elected officials have a lot of pressure to increase the annual u s.

Does the sec require a debt ceiling or floor. In a letter to congress of april 4 2011 treasury secretary timothy geithner explained that when the debt ceiling is reached treasury can declare a debt issuance suspension period during which it can take extraordinary measures to continue meeting federal obligations provided that it does not involve the issue of new debt. They do not apply to equity securities like common stock. Credit ratings also are assigned to companies and governments. Credit ratings apply to debt securities like bonds notes and other debt instruments for example some asset backed securities.

Treasury secretary jacob lew warned that postponing a debt ceiling increase to the very last minute is exactly what our economy does not need a self inflicted wound harming families and. If the limit is not increased by march 2017 which would be considered a fast turnaround based on recent similar events the us would immediately be in violation of the debt ceiling. Interest rate floors are utilized in derivative. There s no need for a debt ceiling.

Companies are required by the securities and exchange commission to file an 8 k to announce major events relevant to shareholders such as an acquisition. The debt ceiling crisis could be the most serious one yet. An interest rate floor is an agreed upon rate in the lower range of rates associated with a floating rate loan product.