The author, a technical officer at the Association of Corporate Treasurers, describes the growth in the power of the rating agencies and explains the background and content of the new code which has been proposed to cover their activities in both the UK and the US.

Purpose The purpose of this paper is to examine the difference of credit enhancement of variously secured bonds issued by local government financing platform bond (LGFPB). Design/methodology/approach The approaches to secure the bonds usually include mortgage, collateral, guarantee, etc....

Purpose – Investment capital markets have been displaying signs of disarray and are significantly damaged. This is especially manifest in the case of the USA and some countries in Europe. Symptoms of this damage are visible. The operators are declining in number, contracting in scale and...

Purpose – This paper presents the statistical distribution of credit ratings and their migration in Israel, and shows that for 16 years the distribution of ranks has been skewed to the left. The purpose of this paper is to analyze why firms with average quality debt have not changed their...

Purpose – The purpose of this paper is to contribute to the debate on the current economic crisis and to highlight the importance of the counter‐party credit risk, which was surprisingly neglected by the Basel Committee on Banking Supervision in its proposed enhancements to the Basel II...

Using the principal component analysis (PCA) and support vector regression machine (SVR) in predicting the credit rating of online stores. Collects 14 variables, including 982 observations of dress shops in Taobao. Firstly, the authors use the method of PCA to filter and reduce the dimension of...

In order to explore how credit ratings may affect financial markets, we analyze a global game model of debt roll-over in which heterogeneous investors act strategically. We find that the addition of the rating agency has a non-monotonic effect on the probability of default and the magnitude of...

Purpose – The aim of this paper is to provide a grammar for dissecting the financial crisis that began in the housing finance market of industrialized nations in 2007, rapidly becoming a general credit crisis and spreading to all parts of the world and causing a global recession of gigantic...

Regulators in the UK and the USA recognize the need to assist borrowers that face a huge number of mortgage products with a multitude of fee combinations offered by a large number of lenders. For over 25 years they attempted to make the mortgage selection process more borrower‐friendly but,...

Purpose – This paper aims to investigate the determinants of default mortgage in China and the factors affecting the mortgage amount granted by Chinese banks. Design/methodology/approach – This paper employs the credit scoring model to investigate the determinants of default mortgage in...