Restoring ratings

Trust in credit ratings has been tarnished due to the subprime crisis, heaping pressure on agencies to make changes to the way they rate collateralised debt obligation tranches. But market participants are already accusing one firm of going too far. Mark Pengelly reports

risk-0608-13-gif

Credit ratings make the collateralised debt obligation (CDO) market tick. But credit market contagion, set off by bad US subprime mortgages, has created interest in ratings from far outside the CDO market itself.

July 2007 heralded the shock downgrades of thousands of tranches of residential mortgage-backed securities and hundreds of CDOs of asset-backed securities (ABSs) linked to them. Soon after, the first barrage was fired in a regulatory and legislative assault against rating agencies that

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here