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rationale for the EU regime concerning the civil liability of CRAs, and mainly from two different perspectives, this article …
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The set up of a civil liability regime for Credit Rating Agencies (CRAs) is one of the most noteworthy aspects of the … new European legislation on CRAs. The purpose of this paper is to analyse the European civil liability regime for CRAs set … to understand: 1) why a common civil liability regime for CRAs was needed in the EU; 2) who benefits from this; and 3 …
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When things go wrong, it is always good to find someone to blame. As the credit crisis started to unfold in 2007, credit rating agencies (“CRAs”) emerged as the villain – or scapegoat, one might say – for commentators and regulators alike. To sum up, observers accused CRAs of doing a...
Persistent link: https://www.econbiz.de/10013120955
Credit ratings are a quasi-public good, and investors and financial markets regulators need an independent assessment of the credit-worthiness of an issuing entity because of information asymmetries and principal agent problems. In light of the high volatility of market-based measures and the...
Persistent link: https://www.econbiz.de/10013155506
This paper studies the impact of credit rating agency (CRA) downgrade announcements on the value of the Euro and the yields of French, Italian, German and Spanish long-term sovereign bonds during the culmination of the Eurozone debt crisis in 2011-2012. The employed GARCH models show that CRA...
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