In an economic downturn, widespread downgrades of these low-rated investmentgrade bonds to speculative-grade ratings could induce some investors to sell them rapidly--for instance, because lower-rated bonds have higher regulatory capital requirements or because bond funds have limits on the share of non-investment-grade bonds they hold.
Speech  An Efficient, Competitive and Safe Payments System  Philip Lowe[*] Governor Keynote Address at Australian Payments Network Summit 2022 Sydney – 14 December 2022  Thank you for the invitation to speak at AusPayNet’s annual Summit. It is a privilege to be with you again. The world of payments is changing rapidly.