Did Asset Complexity Trigger Ratings Bias?
نویسندگان
چکیده
Most market observers attribute the recent credit crunch to a confluence of factors: excess leverage, opacity, improperly estimated correlation between bundled assets, lax screening by mortgage originators, and market-distorting regulations. It was the job of the credit rating agencies to create transparency, to provide the basis for risk-management regulation, and to discipline mortgage lenders and the creators of structured financial products by rating their assets. Understanding the origins of the crisis requires, at least in part, understanding the failures of the market for ratings.
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