Second, structured credit products whose valuations are model-determined. Even if risks are well dispersed across the system, in a crisis situation, a suspicion that some financial  BIS Review 109/2007  3  institutions could have exposures, event modest, to such assets for which no market value can be computed, can significantly impair the functioning of the market.
Corporates will need to impute these into their debt management strategies. Role of the Private Sector in Forestalling a Crisis The efforts to involve the private sector in debt management have many objectives, viz., bring about a more orderly adjustment process, limit moral hazard, strengthen market discipline, help protect countries against volatility and contagion.