We investigate how the link between bond spreads and credit ratings is affected by the credit cycle. Using a simple model of the credit assessment process, we show that when the debt market is more opaque, the information content of ratings becomes poorer, creating an incentive for investors to...

New rating systems allow to increase the efficiency of pricing policy and to define better solutions for managing the degree of independence of operating units. More In detail in defining limits to risk–adjusted applied to each counterpart, the bank can only propose to the distribution network...