The activity of Credit Rating Agencies (CRAs) can lead to Excessive Volatility Risk (EVR), adversely affecting issuances of debt by sovereign governments. By EVR, we mean the risk of effects on bond yields, caused by ratings which are independent from the supply of new information (information...

The Dodd-Frank Act promised to usher in sweeping changes to overhaul the rating agency industry. But in the years after the Act's passage, hopes have turned into disappointment as the most important questions of how to enhance rating agency competition, accuracy, and accountability remain...

Corporate leverage among emerging market firms went up considerably after the 2007–09 Global Financial Crisis (GFC). We investigate how the increased emerging market corporate leverage in the post-GFC period (2010–15)impacted the underlying credit risk, compared to the pre-GFC (2002–2006)...

This chapter attempts to capture the global regulatory response against rating agencies in the aftermath of the Global Financial Crisis, and its implication on the rating industry. Section II starts with an outline of the role and influence of rating agencies in the financial market, and...

For decades credit rating agencies were viewed as trusted arbiters of creditworthiness and their ratings as important tools for managing risk. The common narrative is that the value of ratings was compromised by the evolution of the industry to a form where issuers pay for ratings. In this paper...