Markets: The Credit Rating Agencies.¶
White, L. J. (2010). Markets: The Credit Rating Agencies. Journal of Economic Perspectives, 24(2), 211-226.
Cited by¶
3 citations across 3 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Certification
- In financial markets, rating agencies certify creditworthiness and auditors attest financial statements.
This sourceAnalyzes the issuer-pays credit-rating model: structured securities rated for the issuers who paid, ratings-shopping for soft grades, and the role of inflated ratings in the 2008 crisis.
- In financial markets, rating agencies certify creditworthiness and auditors attest financial statements.
- Evaluative Rating
- Financial risk substrates run on it: sovereign and corporate credit grades (Aaa…C), consumer credit scores, insurance underwriting tiers.
This sourceAnalyzes credit rating agencies, ordered letter-grade scales for sovereign and corporate default risk, the issuer-pays incentive conflict, and the regulatory hard-wiring of ratings into permissible-holding thresholds.
- Financial risk substrates run on it: sovereign and corporate credit grades (Aaa…C), consumer credit scores, insurance underwriting tiers.
- Signal Devaluation
- Ratings inflation. The pre-2008 expansion of AAA ratings on structured products eroded AAA's informativeness about default risk, with recipients adapting only after the failure.
This sourceAnalyzes how the issuer-pays model and the pre-2008 expansion of AAA ratings on structured products eroded the informativeness of top ratings.
- Ratings inflation. The pre-2008 expansion of AAA ratings on structured products eroded AAA's informativeness about default risk, with recipients adapting only after the failure.
Verification¶
This reference passed the adversarial substantiation pipeline: it was checked to exist and to support the claim it is attached to. See how references were verified.
Registry ID ref:8a893fcfacee · see in the full table