As the risk characteristics of structured financial products differ markedly from those of traditional bonds, it seems to me that, not least, the use of a separate rating scale for structured financial products would be a promising way to help create the necessary transparency. At the same time, however, I would like to warn against exaggerated expectations.
Some of this unusual behavior probably reflects the ability of modern firms to function with leaner inventories, but firms also appear to have been acting more cautiously. A second distinctive element of this recovery involved households.