1 / 10

The Courage to Innovate

The Courage to Innovate. Rating Agencies, Indexes and Your Portfolio. Your portfolio is built on stale and unreliable credit ratings Even your S&P 500 index fund S&P and Moody ’ s use issuer pay business model. What We Hear. “ I hate S&P! Those guys are crooks!

andres
Download Presentation

The Courage to Innovate

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Courage to Innovate

  2. Rating Agencies, Indexes and Your Portfolio Your portfolio is built on stale and unreliable credit ratings Even your S&P 500 index fund S&P and Moody’s use issuer pay business model

  3. What We Hear “I hate S&P! Those guys are crooks! Have you read ‘The Big Short’?” -Premier Wealth Manager

  4. Government Studies • Financial Crisis Inquiry Commission • Senate Permanent Committee on Investigations: Credit Ratings • SEC Credit Ratings Firms Summary Report - 2008

  5. Academic and Industry Studies • CFA Institute • “Issuer Pays Ratings Model and Ratings Inflation • “Does the Bond Market Want Informative Credit Ratings?” • “Does Regulatory Certification Affect Information Content of Credit Ratings?” • “Credit Rating Firms Have Historically Been Harder on Sovereign Debt Than Corporate Debt”

  6. Lehman Brothers - 2008 Lehman Files for Bankruptcy September 14th 2008

  7. Lehman Brothers - 2008 AAA AA+ AA AA- A+ A BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- CC C D 5/28/08 9/23/08

  8. Credit Rating Age Indexes

  9. Number of Companies in Average

  10. Questions?

More Related