Whose responsibility is it to serve as the "watchdog" on behalf of the bondholders?

Question

Quizplus · Accepted Answer

The trustee has the responsibility to serve as the "watchdog" on behalf of the bondholders. They ensure that the terms of the bond agreement are being followed and that the bondholders' interests are being protected. The custodian is responsible for holding and safeguarding the assets that back the bonds, but they do not have the same oversight responsibilities as the trustee. Wall Street refers to the financial industry as a whole and is not a specific entity responsible for overseeing bondholders.

Whose Responsibility Is It to Serve as the "Watchdog" on Behalf