kaal:claim:5583610-027

For large issuers, the favorable accounting treatment and fiat-parity redemption revenue could improve credit ratings enough to save as much as $440 million a year in interest through debt refinancing.

Source quote, verbatim

For large firms, the favorable accounting treatment could result in annual savings of up to $440 million through debt refinancing, as enhanced credit ratings lower interest expenses.

From

Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025), 5.2. Economic Incentives for Shareholder Retention, p. 23
https://ssrn.com/abstract=5583610 · source PDF

Cite as

Wulf A. Kaal, Liquid Equity Rewards in Corporate America (2025). SSRN: https://ssrn.com/abstract=5583610

Holds when

large issuers with substantial loyalty programs and $25 to $40 billion debt loads
credit rating improvement of one to two notches

Classification

empiricalsupport: arguedeconomics

Related claims

restates kaal:claim:5454054-009 Because LER voucher redemptions generate revenue at fiat parity, they can improve issuer credit ratings and lo...

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