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Credit Rating Agencies and the US Bond market

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Credit Rating Agencies and the US Bond market  Reply with quote  

Hi people,

I'm currently doing a course work about the role of CRA's in the US bond market. I have to do a case study of it on no more than 2 pages. It can be about anything actually. However, something in specific about the financial crisis may be to prefer. I need a really good idead of what to write about. I have access to Bloomberg, so I can extract tables, graphs etc.

Any ideas?

Post Sat Dec 08, 2012 8:52 pm
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I think one interesting paper that probably would be hard to fit into two pages would explore the hypothesis that the ratings are not absolute indicators of a creditor's probability of default. Probabilities are mathematically absolute constructs, but the probability of a credit default is not. Therefore the premise that a credit rating is some reliable indicator of probability of a sovereign default may be something of a difficult to support hypothesis. And if it doesn't serve that purpose, then what purpose does it serve, since it's basically the risk of default (over time) for which a creditor pays. That last is just some food for thought, not for your paper, but I think just exploring the relativity of credit ratings, and what they are relative in relation to, and over time, might make for some interesting research.

Post Sun Dec 09, 2012 8:08 am
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