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let's say that I run some type of a pension fund and I have 1 billion dollars that I need to invest someplace and I dig around a little bit and there's this company a over here and it needs to borrow a billion dollars and it's willing it's willing to give 10% interest in exchange for borrowing that billion dollars so if I give these characters over here my billion dollars if I lend it to them if I lend them the billion dollars on an annual basis they are going to give me ten percent interest there's a problem here though the rating date the rating agencies the ones that in theory should be independent they've only given the company a a double B rating and this is a pension fund I have to only invest in the safest of safest of securities I have to invest only in things that are double-a and so here might enter a character like AIG and obviously things have changed since their heyday but AIG based on at least Moody's perspective it has a double-a rating so AIG could say hey look pension

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