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Tag Archives: ratings

Credit ratings agencies are more powerful than regulators – why not harness that?

Tomorrow the House and Senate conference committee is finalizing the language for credit rating agencies. The push and shove is in full flight… Senator Al Franken is promoting his amendment to establish a “ratings board” that will assign a specific rater (Nationally Recognized Statistical Rating Organizations [NRSRO]) to rate structured finance deals. If adopted his amendment […]

Fitch announces recalibration of U.S. municipal ratings

Fitch Announces Recalibration of U.S. Municipal Bond Ratings NEW YORK–(BUSINESS WIRE)–Fitch Ratings is proceeding with the recalibration of certain of its U.S. Public Finance credit ratings. Fitch initially announced the initiative in July 2008, but suspended it in October of that year in the midst of the financial crisis. This recalibration will affect ratings in […]

Muni market confusion

Bond insurance down to 5% of new issues from 50%… BABs have reduced supply… Are credit ratings to be trusted? Municipal revenues has declined… “We don’t expect the muni market to collapse…”

Baby steps for transparency… S&P to use identifiers on structured finance ratings

Standard and Poor’s will begin using an identifier to distinguish between their ratings on structured finance products and other ratings… this is a good step forward for the markets… (H/T Credit Risk Chronicles) ~~~”As market participants will be aware, under the European Regulation on Credit Rating Agencies (Regulation (EC) No 1060/2009) in force from December 2009 (the […]

The New Improved 2009 Floaters

So much is made of the special abilities of Wall Street to innovate new ways to flow capital to various entities… But is all innovation good? Or is some of it just new ways for Wall Street underwriters to package securities and make fees? The Wall Street Journal reports today on the New Improved 2009 […]

You want transparency? Tag it…

XBRL for Dummies One of the easist ways to create transparency in financial markets is to break documents or processes into pieces and tag them… this is the approach that FIX, the standard for electronic trading of securities takes and  XBRL does for financial reporting… Some have suggested this approach for asset backed securities… the […]

Vigilante silencioso

From Chicago Public Radio… This American Life… ~~~~ Since Congress hasn’t held 1930’s-style hearings into the causes of the financial crisis, we stage one of our own.  The subject? The regulators and watchdogs who were supposed to be overseeing the banks and the finance industry—to make sure things wouldn’t blow up like they have.  Clearly […]

The Fed says no-no to rating shopping

Reuters reports about the Federal Reserve opening the pool of ratings they will use for the TALF program to include two small, investor paid NRSROs (DBRS and Realpoint)… and the reporter gets to the real underlying issue…. which is the issuer doing selective disclosure… or the right of issuers to share the underwriting details with […]

The nations jewels… Wendy Pitts Reeves of Blount County, Tennessee

  Wendy Pitts Reeves Industry: Government Occupation: Licensed Clinical Social Worker (LCSW), Speaker, Consultant Location: Maryville : Tennessee : United States About Me As your voice for Seat C of District 4 on the Blount County Commission, I am committed to hearing what you have to say, and to keeping you informed about your local government. These are just ideas. I don’t […]

Conflict supposition

~~~~”McDaniel this month defended the credit raters’ issuer-pay model at an SEC roundtable in Washington, saying that investors can pressure ratings companies just as easily as underwriters….”*~~~~ This will become the central argument in defense of the “issuer pay” model for credit ratings agencies…. The SEC receives information from credit rating agencies as part of […]