This paper provides a coherent framework for classifying cases with multiple tortfeasors in relation to the efficient allocation of liability across the tortfeasors. We construct a simple model in which various tortfeasors contribute to a loss, and consider efficient liability rules under...

In this Special Comment, we discuss Moody's treatment of Other Comprehensive Income (OCI) components when calculating effective leverage for finance companies. Our purpose is to give issuers and investors insight into Moody's views concerning these sometimes misunderstood or ignored items