This paper shows that the stock price of the rating agency Moody’s reacts negatively to ratingactions that are perceived to indicate low rating quality. The reaction is economicallysignificant. The cumulative effect corresponds to a 20% loss in market capitalization. Thissuggests that market...

Rating agencies state that they take a rating action only when it is unlikely to bereversed shortly afterwards. Using a formal representation of the rating process, I showthat such a policy provides a good explanation for the empirical evidence: ratingchanges relatively seldom occur, they...

In diesem Papier untersuchen wir experimentell, ob Informationsintermediäre wieRatingagenturen die Bonität von Kreditnehmern unterschiedlich bewerten, wenn sie ex-postdie Richtigkeit eigener Bewertungen herbeiführen können (sog. Self-fulfilling Prophecies).Diese Frage ist besonders im...

AbstractThe following sections are included:IntroductionThe Retail MarketsThe Electronic MarketsThe Clearing and Settlement SystemPost trading costsThe current market infrastructureThe Role of CustodiansThe Central Securities DepositoriesGlossaryReferences

AbstractThe following sections are included:The Covered Bond MarketIntroductionBasic featuresMarket evolutionPrimary marketSecondary marketCovered bonds in the sovereign debt crisisInflation-Linked BondsIntroductionThe developmentThe role of ILBsILBs and monetary policyPortfolio selection with...

AbstractThe following sections are included:IntroductionThe CRAsThe role of CRAsCredit ratingsTaxonomy of ratingRegulation of CRAsConflicts of interestThe Importance of CompetitionRating MethodologiesGeneral principles of the rating processInput factors for the rating processGrading process for...

AbstractThe following sections are included:IntroductionHistory and DevelopmentThe Main Features of Euro BondsGovernment BondsCorporate BondsThe 2008 Financial CrisisThe European Union BondAppendix 1.A. The Major European Bond MarketsGlossaryReferences