Does the sponsor make money on the insurance program?
Inasmuch as we are just initiating the insurance program, it is difficult to say whether it will ultimately generate any profits for the sponsor. However, the sponsor is a for-profit company, and does attempt to earn a profit on the products and services that it offers. The sponsor also believes that the success of the insurance program may lead to other insurance products and services related to the offering of real financial instruments. Finally, if it were possible to reduce the insurance fee down to an absolute break-even point, then any profit over-and-above that point would likely shift over into a profit on the sale of the MR$ notes; since a readjustment in the insurance fee would likely increase the winning bid at the MR$ auctions by an equal amount.
