Are Credit Rating Agencies Useless? The Role of Rating Agencies in European Bond Markets: Information Transmission vs. Spread Stabilization

2011 ◽  
Author(s):  
Philippe Raimbourg ◽  
Jean-Noël Ory
Keyword(s):  
Information Transmission ◽  
Credit Rating ◽  
Credit Rating Agencies ◽  
Bond Markets ◽  
Rating Agencies

scholarly journals Information as a condition of justice in financial markets: The regulation of credit-rating agencies

2017 ◽  
Author(s):  
Boudewijn de Bruin
Keyword(s):  
Credit Risk ◽  
Financial Markets ◽  
Institutional Investors ◽  
Credit Rating ◽  
Credit Rating Agencies ◽  
Informational Needs ◽  
Sources Of Information ◽  
Rating Agencies ◽  
Mortgage Backed Securities

This chapter argues for deregulation of the credit-rating market. Credit-rating agencies are supposed to contribute to the informational needs of investors trading bonds. They provide ratings of debt issued by corporations and governments, as well as of structured debt instruments (e.g. mortgage-backed securities). As many academics, regulators, and commentators have pointed out, the ratings of structured instruments turned out to be highly inaccurate, and, as a result, they have argued for tighter regulation of the industry. This chapter shows, however, that the role of credit-rating agencies in achieving justice in finance is not as great as these commentators believe. It therefore argues instead for deregulation. Since the 1930s, lawgivers have unjustifiably elevated the rating agencies into official, legally binding sources of information concerning credit risk, thereby unjustifiably causing many institutional investors to outsource their epistemic responsibilities, that is, their responsibility to investigate credit risk themselves.

scholarly journals A Study on the Role of Korean Credit Rating Agencies

2015 ◽  
Vol 40 (4) ◽  
pp. 123-144
Author(s):  
Doowon Ryu ◽  
Doojin Ryu ◽  
Heejin Yang ◽  
Kyttack Hong
Keyword(s):  
Credit Rating ◽  
Credit Rating Agencies ◽  
Rating Agencies
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