Moody’s Investors Service
Kirnon: Agencies and banks can do more for transparency
Both rating agencies and banks can do more to meet investor demand for greater transparency in the structured credit market, said Noel Kirnon, New York-based head of global structured finance at Moody’s Investors Service.
A matter of trust
CDO Ratings
Moody’s: transparency will drive CDO investor comeback
The European collateralised debt obligation (CDO) market's ability to offer transparency to investors will determine the speed of their return to the sector, said Moody’s Investors Service.
Agencies rethink market risk rating methods
The three largest global rating agencies are reconsidering their approach to rating structures exposed to fluctuations in market value, with potentially unpalatable results for holders and arrangers of various structured credit products.
Moody’s: 2008 marks turning point for credit cycle
New York-based rating agency Moody’s Investors Service said the global corporate default rate had reached its lowest level in two decades by the end of 2007, although it expected a “sharp rise” in 2008.
CPDO ratings hang in the balance
Investors in constant proportion debt obligations (CPDOs) were given an unwanted early Christmas present by rating agencies, as Standard & Poor’s (S&P) and Moody’s Investors Service put the ratings of CPDO notes on review for a possible downgrade.
$3 billion of CPDOs at risk of unwinding
Barclays Capital estimates $3 billion of constant proportion debt obligations (CPDOs) are at imminent risk of being unwound.
CDO shakeout puts spotlight on managers
Unsettled structured credit markets are causing investors to become more scrupulous in their collateralised debt obligation (CDO) manager choices, according to market participants.
The bigger picture
In 2003, rating agencies considered operational risk as a separate risk category, but quantification problems have prompted them to take an integrated, enterprise risk management approach.
Subprime rating actions spark EC review of agencies
The European Commission (EC) is planning an “intensive review” of credit rating agencies after the slew of recent rating actions on securities affected by poorly performing US subprime mortgages.
Barings: Subprime not to blame for increased LBO risk
Spread widening in corporate credit and leveraged debt has been wrongly attributed to the fallout from the US subprime mortgage market, according to Baring Asset Management.
Moody's fighting talk on structured CMBS
Moody's Ratings has released a report detailing reaction to its changes in subordination levels required for US commercial mortgage-backed securities (CMBS).
New software shows credit risk under-priced, Moody's says
Banks may have been consistently underestimating the risk involved in long-dated credit derivatives, if a new software package from Moody's KMV is correct.
Moody’s: European credit quality decline slowing, but no upturn expected
The decline of credit quality in western Europe slowed over the first quarter of 2007 due to strong economic growth especially in the financial sector, but an upturn in the credit cycle is not in sight this year, according to a report by Moody’s…
Moody’s downgrades banks after methodology U-turn
New York-based Moody’s Investors Services has downgraded the debt and deposit ratings of 44 banks after revising its new joint default analysis (JDA) methodology.
Moody's: halo for new EU entrants set to fade
European Union (EU) member countries with low credit ratings, such as Romania and Bulgaria, will continue to benefit disproportionately from the EU halo effect, according to a report by Moody’s Investors Service.
European defaults growing, according to Moody’s
The rate of defaults among speculative-grade European corporate bond and loan issuers more than doubled in 2006 and will increase further in 2007, according to New York-based Moody’s Investors Service.
Moody’s backtracks on bank ratings
Following criticism over the use of Joint Default Analysis (JDA) in calculating its bank ratings, New York-based Moody’s Investors Service will review the practice.
Moody's methodology change sparks controversy
The first effects of Moody's widespread re-rating of European financial credits caused widespread consternation at the end of last month, apparently influencing credit market pricing and demand for basket credit derivatives trades.
Moody’s: credit cycle at tipping point
The rate of defaults on speculative-grade corporate debt was at its lowest level for two decades in 2006, but will double in 2007, according to New York-based rating agency Moody’s.
Moody’s: “unprecedented” interest in CDPCs
New York-based ratings agency Moody’s has said it is currently processing proposals for 24 rated credit derivatives product companies.
Leveraged loan CLOs greatest source of risk in 2007
Leveraged loan collateralised loan obligations (CLOs) will pose the greatest risk in 2007, according to a gathering of investors and arrangers at a Moody’s conference in London yesterday.