Rating Shopping or Catering?An Examination of the Response to Competitive Pressure for CDO Credit Ratings
نویسندگان
چکیده
منابع مشابه
Credit Rating Impact on CDO Evaluation
One of the most significant developments in international credit markets in recent years has been the trade in Collateralized Debt Obligations (CDO), which has enabled financial institutions to repackage the credit risk of an asset portfolio into tranches to be transferred to investors. The present paper evaluates the credit risk of such a portfolio and the related tranches by applying two prom...
متن کاملOpacity, Credit Rating Shopping, and Bias
We develop a rational expectations model in which the issuer of a nancial instrument purchases credit ratings(s) in order to provide useful information to investors and attract investor demand. We examine the nature of a credit-rating equilibrium in a staged game in which an issuer purchases rating(s) sequentially and then decides which ratings to disclose. Our analysis emphasizes the importanc...
متن کاملconsequence analysis of the leakage, ignition and explosion during high pressure sour gas injection process to the oil reservoir
there is no doubt that human being needs to become integrated with industry and industry needs to be progressed, daily. on the other hand, serious events in industrial units specially in oil industries has been shown that such damages and events are industry related ones. the consequence of such events and damages which resulted in chemical and poisoned explosions and loss of life and property ...
The Credit Ratings Game
The collapse of so many AAA-rated structured ...nance products in 2007-2008 has brought renewed attention to the causes of ratings failures and the con‡icts of interest in the Credit Ratings Industry. We provide a model of competition among Credit Ratings Agencies (CRAs) in which there are three possible sources of con‡icts: 1) the CRA con‡ict of interest of understating credit risk to attract ...
متن کاملDo Global Credit Rating Agencies Think Globally? The Information Content of Firm Ratings around the World
What is the information content of firm ratings? We disentangle the relative contribution to firms’ ratings of sovereign risks and individual firms’ performance indicators, reportedly employed by rating agencies. We reach three conclusions. First, sovereign risks’ contribution is disproportionately greater in developing countries vis-à-vis developed countries. Second, even controlling for the “...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Review of Financial Studies
سال: 2013
ISSN: 0893-9454,1465-7368
DOI: 10.1093/rfs/hht036