That will only work if you label all debt in that way
And, of course, people do that. It’s called a “credit rating” and there are a few large institutions which assign ratings to bonds. Pretty much all bonds traded in financial markets have credit ratings.
And, of course, people do that. It’s called a “credit rating” and there are a few large institutions which assign ratings to bonds. Pretty much all bonds traded in financial markets have credit ratings.
And one of the big issues leading to the financial crisis was that a lot of these ratings were wrong and a lot of AAA bonds defaulted.