For the Fed to take a loss, the direct counterparty would have to default, and either the market value of the collateral would have to decline or the issuer of the asset held as collateral would have to default.
Joey Lina, President Marlo Cruz, ladies and gentlemen of the Credit Management Association of the Philippines, special guests. Good morning. On behalf of the Bangko Sentral ng Pilipinas, I congratulate the Credit Management Association of the Philippines on its diamond anniversary. There are few organizations that can claim such longevity. This is, indeed, admirable!