Ex-rated? The judging of the ratings industry

clock

Joanna Faith reports on the failure of the ratings agencies in the financial crisis and the need for a complete overhaul of the industry

In the 21 June issue of Investment Week we featured an article from Tony Angel, head of Europe, Middle East and Africa at Standard & Poor’s. In the article, Angel said that during the financial crisis, credit ratings had “stood up well in the tough conditions and fulfilled their role as benchmarks of default risk”. He backed up his comments with empirical data demonstrating the performance of the ratings agency. However, he acknowledged the performance of ratings in two specific areas – recent US residential mortgage-backed securities (RMBS) and collateralised debt obligations (CDOs) ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Industry

The Big Interview: Rathbones' Jayne Rogers on value over price and the short-termism 'disease'

The Big Interview: Rathbones' Jayne Rogers on value over price and the short-termism 'disease'

Impact of Consumer Duty on distribution

Cristian Angeloni
clock 07 March 2025 • 6 min read
The Big Question: How are you managing concentration risk?

The Big Question: How are you managing concentration risk?

Nine experts answer

Investment Week
clock 06 March 2025 • 1 min read
Nominate now for Investment Week Women in Investment Awards 2025

Nominate now for Investment Week Women in Investment Awards 2025

Closing date is 11 April

Katrina Lloyd
clock 03 March 2025 • 3 min read
Trustpilot