Structured finance ratings given BIS OK
The structured finance ratings business was given a clean bill of health today by the Bank for International Settlements (BIS), with a few caveats.
The BIS paper, released by the Committee on the Global Financial System (CGFS), is entitled The role of ratings in structured finance: issues and implications. The CGFS said evidence suggests that institutional investors do not rely solely on ratings produced by credit rating agencies to make their investment decisions. It also said that the narrow competitiveness of the rating agency world didn’t seem to have an impact on the quality of the ratings given. Furthermore, the working group noted
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