[PDF] Regulating Credit Rating Agencies

Regulating Credit Rating Agencies PDF
Author: Aline Darbellay,
Publisher: Edward Elgar Publishing
ISBN: 085793936X
Size: 32.51 MB
Format: PDF
Category : Business & Economics
Languages : en
Pages : 296
View: 1058

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Regulating Credit Rating Agencies

by Aline Darbellay,, release date 2013-09-30, Regulating Credit Rating Agencies Books available in PDF, EPUB, Mobi Format. Download Regulating Credit Rating Agencies books, øŠAline Darbellay analyzes the obvious system relevance of credit rating agencies in depth and assesses the possible options for regulatory responses to this systemic issue. Thereby, the book is based on a fruitful comparative legal approach and formul




[PDF] Regulation And The Credit Rating Agencies

Regulation and the Credit Rating Agencies PDF
Author: Daniel Cash
Publisher: Routledge
ISBN: 1351107895
Size: 55.18 MB
Format: PDF, Kindle
Category : Law
Languages : en
Pages : 170
View: 649

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Regulation And The Credit Rating Agencies

by Daniel Cash, release date 2018-08-06, Regulation And The Credit Rating Agencies Books available in PDF, EPUB, Mobi Format. Download Regulation And The Credit Rating Agencies books, This book examines the transgressions of the credit rating agencies before, during and after the recent financial crisis. It proposes that by restricting the agencies’ ability to offer ancillary services there stands the opportunity to limit, in an achievable and practical manner, the potentially negative effect that the Big Three rating agencies – Standard & Poor’s, Moody’s and Fitch – may have upon the financial sector and society moreover. The book contains an extensive and in-depth discussion about how the agencies ascended to their current position, why they were able to do so and ultimately their behaviour once their position was cemented. This work offers a new framework for the reader to follow, suggesting that investors, issuers and the state have a ‘desired’ version of the agencies in their thinking and operate upon that basis when, in fact, those imagined agencies do not exist, as demonstrated by the ‘actual’ conduct of the agencies. The book primarily aims to uncover this divergence and reveal the ‘real’ credit rating agencies, and then on that basis propose a real and potentially achievable reform to limit the negative effects that result from poor performance in this Industry. It addresses the topics with regard to financial regulation and the financial crisis, and will be of interest to legal scholars interested in the intersection between business and he law as well as researchers, academics, policymakers, industry and professional associations and students in the fields of corporate law, banking and finance law, financial regulation, corporate governance and corporate finance.




[PDF] The Governance Of Credit Rating Agencies

The Governance of Credit Rating Agencies PDF
Author: Andrea Miglionico
Publisher: Edward Elgar Publishing
ISBN: 1786439948
Size: 48.67 MB
Format: PDF, Kindle
Category : LAW
Languages : en
Pages : 360
View: 398

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The Governance Of Credit Rating Agencies

by Andrea Miglionico, release date 2019, The Governance Of Credit Rating Agencies Books available in PDF, EPUB, Mobi Format. Download The Governance Of Credit Rating Agencies books, The global crisis revealed that credit rating agencies (CRAs) are capable of bringing about potential distortions in the financial sector, thereby resulting in a reduction in market confidence which, in turn, influences negotiations and expectations. CRAs need to be held accountable for lack of transparency and inaccurate ratings, however the existing regulatory framework does not secure adequate investor protection. This book provides a new and important contribution to research in the area, at a crucial time in the debate around financial regulation and investment regimes.




[PDF] The Independence Of Credit Rating Agencies

The Independence of Credit Rating Agencies PDF
Author: Gianluca Mattarocci
Publisher: Academic Press
ISBN: 012404736X
Size: 25.42 MB
Format: PDF, ePub
Category : Business & Economics
Languages : en
Pages : 200
View: 3420

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The Independence Of Credit Rating Agencies

by Gianluca Mattarocci, release date 2013-10-22, The Independence Of Credit Rating Agencies Books available in PDF, EPUB, Mobi Format. Download The Independence Of Credit Rating Agencies books, The Independence of Credit Rating Agencies focuses on the institutional and regulatory dynamics of these agencies, asking whether their business models give them enough independence to make viable judgments without risking their own profitability. Few have closely examined the analytical methods of credit rating agencies, even though their decisions can move markets, open or close the doors to capital, and bring down governments. The 2008 financial crisis highlighted their importance and their shortcomings, especially when they misjudged the structured financial products that precipitated the collapse of Bear Stearns and other companies. This book examines the roles played by rating agencies during the financial crisis, illuminating the differences between U.S. and European rating markets, and also considers subjects such as the history of rating agencies and the roles played by smaller agencies to present a well-rounded portrait. Reports on one of the key causes of the 2008 financial crisis: agencies that failed to understand how to analyze financial products Describes inherent business model and pricing conflicts that compromise the independence of credit rating agencies Reveals how rating agencies large and small, regulatory bodies, and vested interests interact in setting fees and policies




[PDF] Credit Rating Agencies

Credit Rating Agencies PDF
Author: Mohammed Hemraj
Publisher: Springer
ISBN: 3319179276
Size: 13.66 MB
Format: PDF, ePub
Category : Law
Languages : en
Pages : 266
View: 2862

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Credit Rating Agencies

by Mohammed Hemraj, release date 2015-06-22, Credit Rating Agencies Books available in PDF, EPUB, Mobi Format. Download Credit Rating Agencies books, The book examines the role of credit rating agencies (CRAs) in the subprime mortgage crisis. The CRAs are blamed for awarding risky securities ‘3-A’ investment grade status and then failing to downgrade them quickly enough when circumstances changed, which led to investors suffering substantial losses. The causes identified by the regulators for the gatekeeper failure were conflicts of interest (as the issuers of these securities pay for the ratings); lack of competition (as the Big Three CRAs have dominated the market share); and lack of regulation for CRAs. The book examines how the regulators, both in the US and EU, have sought to address these problems by introducing soft law self-regulation in accordance with the International Organisation of Securities Commissions Code and hard law statutory regulation, such as that found in the “Reform Act” and “Dodd-Frank Act” in the US and similar provisions in the EU. The highly topical book examines these provisions in detail by using a doctrinal black-letter law method to assess the success of the regulators in redressing the problems identified. It also examines the US case law regulation relating to the legal liability of CRAs. The book examines whether the regulations introduced have had a deterrent effect on the actions of CRAs, whether investors are compensated for their losses, and how the regulators have dealt with the issues of conflicts of interest and an anti-competitive environment. Should liability be introduced for CRAs through changes in the law so as to compel them to issue reliable ratings and solve the current problems? The book seeks to simplify the complex issues involved and is backed by concrete evidence; as such, it will appeal to both the well-informed and the lay general public who are interested in learning more about the role of CRAs in the sub-prime mortgage crisis and regulators’ attempts to remedy the situation. Novice readers can familiarise themselves with the legal and financial terminology used by referring to the glossary at the end of the book.




[PDF] The Rating Agencies And Their Credit Ratings

The Rating Agencies and Their Credit Ratings PDF
Author: Herwig Langohr
Publisher: John Wiley & Sons
ISBN: 0470714352
Size: 22.92 MB
Format: PDF, Docs
Category : Business & Economics
Languages : en
Pages : 524
View: 3978

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The Rating Agencies And Their Credit Ratings

by Herwig Langohr, release date 2010-04-01, The Rating Agencies And Their Credit Ratings Books available in PDF, EPUB, Mobi Format. Download The Rating Agencies And Their Credit Ratings books, Credit rating agencies play a critical role in capital markets, guiding the asset allocation of institutional investors as private capital moves freely around the world in search of the best trade-off between risk and return. However, they have also been strongly criticised for failing to spot the Asian crisis in the early 1990s, the Enron, WorldCom and Parmalat collapses in the early 2000s and finally for their ratings of subprime-related structured finance instruments and their role in the current financial crisis. This book is a guide to ratings, the ratings industry and the mechanics and economics of obtaining a rating. It sheds light on the role that the agencies play in the international financial markets. It avoids the sensationalist approach often associated with studies of rating scandals and the financial crisis, and instead provides an objective and critical analysis of the business of ratings. The book will be of practical use to any individual who has to deal with ratings and the ratings industry in their day-to-day job. Reviews "Rating agencies fulfil an important role in the capital markets, but given their power, they are frequently the object of criticism. Some of it is justified but most of it portrays a lack of understanding of their business. In their book The Rating Agencies and their Credit Ratings, Herwig and Patricia Langohr provide an excellent economic background to the role of rating agencies and also a thorough understanding of their business and the problems they face. I recommend this book to all those who have an interest in this somewhat arcane but extremely important area." -Robin Monro-Davies, Former CEO, Fitch Ratings. "At a time of unprecedented public and political scrutiny of the effectiveness and indeed the basic business model of the Credit Rating industry, and heightened concerns regarding the transparency and accountability of the leading agencies, this book provides a commendably comprehensive overview, and should provide invaluable assistance in the ongoing debate." -Rupert Atkinson, Managing Director, Head of Credit Advisory Group, Morgan Stanley and member of the SIFMA Rating Agency Task Force "The Langohrs have provided useful information in a field where one frequently finds only opinions or misconceptions. They supply a firm base from which to understand changes now underway. A well-read copy of this monograph should be close to the desk of every investor, issuer and financial regulator, legislator or commentator." -John Grout, Policy and Technical Director, The Association of Corporate Treasurers




[PDF] Ratings Rating Agencies And The Global Financial System

Ratings  Rating Agencies and the Global Financial System PDF
Author: Richard M. Levich
Publisher: Springer Science & Business Media
ISBN: 1461509998
Size: 16.46 MB
Format: PDF, ePub
Category : Business & Economics
Languages : en
Pages : 379
View: 3318

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Ratings Rating Agencies And The Global Financial System

by Richard M. Levich, release date 2012-12-06, Ratings Rating Agencies And The Global Financial System Books available in PDF, EPUB, Mobi Format. Download Ratings Rating Agencies And The Global Financial System books, Ratings, Rating Agencies and the Global Financial System brings together the research of economists at New York University and the University of Maryland, along with those from the private sector, government bodies, and other universities. The first section of the volume focuses on the historical origins of the credit rating business and its present day industrial organization structure. The second section presents several empirical studies crafted largely around individual firm-level or bank-level data. These studies examine (a) the relationship between ratings and the default and recovery experience of corporate borrowers, (b) the comparability of credit ratings made by domestic and foreign rating agencies, and (c) the usefulness of financial market indicators for rating banks, among other topics. In the third section, the record of sovereign credit ratings in predicting financial crises and the reaction of financial markets to changes in credit ratings is examined. The final section of the volume emphasizes policy issues now facing regulators and credit rating agencies.




[PDF] The Economics Of Credit Rating Agencies

The Economics of Credit Rating Agencies PDF
Author: Francesco Sangiorgi
Publisher:
ISBN: 9781680833812
Size: 50.76 MB
Format: PDF, Kindle
Category : Credit bureaus
Languages : en
Pages : 116
View: 5959

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The Economics Of Credit Rating Agencies

by Francesco Sangiorgi, release date 2017, The Economics Of Credit Rating Agencies Books available in PDF, EPUB, Mobi Format. Download The Economics Of Credit Rating Agencies books, We explore through both an economics and regulatory lens the frictions associated with credit rating agencies in the aftermath of the financial crisis. While ratings and other public signals are an efficient response to scale economies in information production, these also can discourage independent due diligence and be a source of systemic risk. Though Dodd-Frank pulls back on the regulatory use of ratings, it also promotes greater regulation of the rating agencies. We highlight the diverse underlying views towards these competing approaches to reducing systemic risk. Our monograph also discusses the subtle contrasts between credit rating agencies and other types of due diligence providers, such as auditors, analysts and proxy-voting advisors. We discuss the frictions associated with paying for information in the context of credit ratings; while the issuer-pay model has been identified as a major issue because of potential conflict of interests, we argue that it has several advantages over the investor-pay model in promoting market transparency. We develop a formal reputation model to explore the underlying nature of rating inflation and how the reputational trade-off is affected by various aspects of the rating process such as regulatory constraints, the fee structure, asymmetric information between issuers and investors and the extent of competition among rating agencies. The monograph also uses our illustrative framework to highlight tension between rating accuracy and economic efficiency when ratings influence project value in the presence of feedback effects. We discuss how selective disclosure of ratings by the issuer distorts the distribution of observed ratings. Selection also provides an alternative explanation for why solicited (purchased) ratings exceed unsolicited (complimentary) ratings and helps interpret the greater SEC support for unsolicited ratings in recent years as illustrating the theory of the second best. We explore the impact of greater competition on welfare, building upon a variety of frameworks. Our analysis points to several ways in which ratings matter as well as techniques for documenting such effects.




[PDF] The Systemic Regulation Of Credit Rating Agencies And Rated Markets

The Systemic Regulation of Credit Rating Agencies and Rated Markets PDF
Author: Amadou N. R. Sy
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451872767
Size: 64.88 MB
Format: PDF
Category :
Languages : en
Pages : 36
View: 6412

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The Systemic Regulation Of Credit Rating Agencies And Rated Markets

by Amadou N. R. Sy, release date 2009-06-01, The Systemic Regulation Of Credit Rating Agencies And Rated Markets Books available in PDF, EPUB, Mobi Format. Download The Systemic Regulation Of Credit Rating Agencies And Rated Markets books, Credit ratings have contributed to the current financial crisis. Proposals to regulate credit rating agencies focus on micro-prudential issues and aim at reducing conflicts of interest and increasing transparency and competition. In contrast, this paper argues that macro-prudential regulation is necessary to address the systemic risk inherent to ratings. The paper illustrates how financial markets have increasingly relied on ratings. It shows how downgrades have led to systemic market losses and increased illiquidity. The paper suggests the use of "ratings maps" and stress-tests to assess the systemic risk of ratings, and increased capital or liquidity buffers to manage such risk.