Thursday, April 26, 2012

The Performance of Corporate Credit Ratings

Posted by D. Daniel Sokol

Albert Metz (Moody's) describes The Performance of Corporate Credit Ratings.

ABSTRACT: Following the performance of structured finance securities in general and residential mortgage-backed securities ("RMBS") related securities in particular, the reputations of the major credit rating agencies-Moody's, S&P and Fitch-have suffered considerably. The core competency of rating agencies is now sometimes questioned even outside of structured finance. But are investors too quick to dismiss the utility of corporate credit ratings? In this short note I will explore the accuracy of the corporate default forecasts Moody's has published throughout the recent financial crisis.

| Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference The Performance of Corporate Credit Ratings:


Post a comment