tag:blogger.com,1999:blog-19649274.post3790073437564091092..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: Reforming the role of credit rating agenciesAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19649274.post-22760748214296131662007-09-10T21:33:00.000+05:302007-09-10T21:33:00.000+05:30Talking about the CRA's, just take a look at the c...Talking about the CRA's, just take a look at the current bond yields of the marquee names in Investment banks. Lehman Brothers Holdings bonds yield higher than the sovereign debt of Columbia. Lehman is rated A+ by CRA's yet it is issuing new paper at BBB- rates. Same with Bear Stearns. Today the U.S. market is repricing debt/ credit risk and this has no bearing with the assessmment of CRA's. Here is the Bloomberg link for the article.<BR/><BR/>http://www.bloomberg.com/apps/news?pid=20601087&sid=aXPKAfjgE3o8&refer=homeYogeshhttps://www.blogger.com/profile/18347434997728247568noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-44384846254986543452007-08-24T06:11:00.000+05:302007-08-24T06:11:00.000+05:30“The second key reform that is being proposed is t...“The second key reform that is being proposed is the removal of credit rating agencies from the regulatory treatment of institutional investors”<BR/><BR/>This is by far the most important reform needed because ironically the better the credit rating agencies get the more the possibilities that they set is up for some truly catastrophic systemic risk. <BR/><BR/>We should never forget that it was the AAA and similar of the credit rating agencies that catapulted some local bad lending policies into a global financial problem, or that those who empowered the credit-rating agencies to have such an influence were the bank regulators.Per Kurowskihttps://www.blogger.com/profile/14155373607182051840noreply@blogger.com