The deal offered creditors a choice of six options to repackage loans and interest overdue into new bonds with maturities of up to 30 years.
Mr. Wyden's effort is opposed by the Competitive Health Care Coalition, a group representing companies that purchase drugs in bulk from manufacturers, repackage them in safety-seal containers and resell the product to doctors.
Investment bankers led by Drexel Burnham Lambert Inc. plan to repackage junk bonds into investment-grade securities, now that at least one credit-rating concern will accept a new way to collateralize these offerings.
Given the popularity of UK fixed interest, there may yet be scope for one of the City's under-employed but enterprising financiers to repackage the lot and provide a tempting spread over gilts.
Traders said the slight widening of mortgage-Treasury spreads reflected the absence of significant activity in Remics, which repackage existing mortgage pools and securities into investment trusts.
Still, Kimball of Moody's forecasts that banks will repackage $3.9 billion of junk this year, up from $2.8 billion last year and $900 million in 1988.
The U.S. firm then will repackage the bonds with other instruments and try to sell them, or else may try to hold the bonds until they mature in two or three years or until stock prices rebound sufficiently to make conversion into stock profitable.
Vendors will be able to buy tapes from the MSRB and repackage the information to sell to investors, trading houses and others.