As well as making it hard to determine which managers have won what, it is also unclear exactly how much is earmarked for loans, and how much for high-yield, with several managers saying they typically encourage investors to opt for a more diverse approach in order to improve returns.
Such an arrangement also lends itself to another, potentially even more troublesome form of abuse: the use of the same earmarked funds to collateralize loans from other Western institutions.
In short, utilization of institutions like Moscow Narodny and even more so IMB as trustees or agents for the Eximbank loans would appreciably reduce the confidence the United States government could have that funds ostensibly earmarked for repayment of U.S. loans would actually be retained by such institutions let alone accessible if the loans have to be called.