Dr. Jim Stewart:

Exactly. If a firm had raised finance and was part of a group structure and if the group gets into difficulty, then the creditors could attack the assets of the firm raising the finance. However, if it is separate, if it is bankruptcy remote, it cannot be attacked in that way. They are not remote from bankruptcy in the sense that if their assets fall in value, the debt owners are subject to liability. A write-down in assets is associated with a write-down of debt. In that sense they are not bankruptcy remote, but in some sectors they are. If an aircraft falls out of the sky, for example, who is liable? Is it the insurance company that is asked to cough up? Who actually pays for this? In the case of leased assets seized by Russia, the leasing industry is trying to claim the insurance companies are responsible for this, whereas the insurance industry might suggest that the firm leasing the assets is responsible. Ultimately it is writers of debt who will bear the loss.