Credit Ratings

  • News

    A Credit Rating You Can Believe In

    Even the most incompetent (or, if you prefer, corrupt) organizations occasionally get something right, especially when they are not being paid to get it wrong in a client’s favor. This seems to be one of those occasions, meaning that Elon Musk may not need to hit up his rich friends for the $200K a month […]

    / May 28, 2014 at 1:56 PM
  • This cow seems cool.


    Too Big To Fail Is Pretty Much Over, Says Moody’s

    Yesterday Moody’s put the debt of four of the six big U.S. banks – GS, JPM, MS, and WFC – on review for downgrade, and the other two – C and BAC – on the amusing “review direction uncertain,”1 because Moody’s is becoming increasingly convinced that, if those banks blew up, the government would not […]

    / Aug 23, 2013 at 4:04 PM
  • Here is an obvious visual pun on one ratings agency getting a bit out of line. The cows encourage obviousness.


    Bond Rating Agency Decided To Try To Rate Some Bonds

    What does a AA credit rating mean? The intuitive answer is something like “it means that the rating agency rating the thing thinks it has a probability of default no higher than X% and no lower than Y%,” where X and Y are the boundaries of AA- and AA+ respectively, and sure, that’s about right. […]

    / Aug 1, 2013 at 11:44 AM
  • You have underestimated me for the last time.


    Apparently Some People Pay Attention To Ratings Agencies

    Would you have predicted this? This paper investigates the impact of credit rating changes on the sovereign spreads in the European Union and investigates the macro and financial factors that account for the time varying effects of a given credit rating change. We find that changes of ratings are informative, economically important and highly statistically […]

    / Jun 17, 2013 at 9:41 AM
  • News

    Berkshire Hathaway-Treasuries Equivalence Proves Brief

    Warren Buffett bonds are no longer deemed as safe as a T-bills by the sages at Standard & Poor’s.

    / May 16, 2013 at 4:35 PM
  • News

    S&P Lawyers Have No Interest In Seeing Scenic Springfield, Ill.

    It’s bad enough that S&P has to go and defend itself against what it says are completely meritless allegations with regard to its totally up-and-up, if not-always-in-the-ballpark-of-accurate, credit ratings. But it’d really prefer not to have to hire local counsel in Denver, Des Moines, Hartford and 14 other remote hellholes that the states that are suing it insist on using as their seats of government.

    / Mar 28, 2013 at 5:14 PM
  • Why hello there cow.

    Banks, News

    Moody’s Slightly Reduces Overrating Of Banks

    Are we supposed to care about these downgrades? I like Glenn Schorr at Nomura, emphasis mine: We think the net financial impact of these downgrades will be manageable as 1) potential collateral calls are small percentages of these firms’ liquidity pools; 2) counterparties have been preparing for this for some time and ratings downgrades have […]

    / Jun 22, 2012 at 10:03 AM
  • News

    Full Faith And Credit Ratings

    How excited are you by the prospect that the Treasury might regulate credit ratings? Us either. And, as it happens, even the Treasury isn’t so keen on the idea. To wit: The Obama administration is resisting calls to get involved with ensuring that credit ratings are reliable and said on Wednesday this would force investors […]

    / Aug 5, 2009 at 2:37 PM

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