The two guys and a Bloomberg hedge fund days may be a thing of the past, but with the same resources you can probably get in on one part of the structured finance industry. Mildly dissatisfied with the performance of Moody's, S&P, and Fitch, the Fed is going to open up TALF eligibility to securities rated by firms other than the usual suspects. Now before people start tweaking their Monte Carlo models, you should know that it's not just anybody that can get involved. There are standards you'll need to meet.
A proposed rule would enable the Fed to choose a credit-rating service for asset-backed securities based on "a certain minimum level of experience in rating deals of any particular type."
We've already seen what minimal levels of experience can achieve. At some point, it might be time to move the bar up to "a certain minimum level of experience performance in rating deals of any particular type." But clearly not quite yet.
Fed Opens Credit-Rater Door for TALF [WSJ]