Sovereign Debt and Credit Rating Bias by David F. Tennant, Marlon R. Tracey

Sovereign Debt and Credit Rating Bias



Download Sovereign Debt and Credit Rating Bias

Sovereign Debt and Credit Rating Bias David F. Tennant, Marlon R. Tracey ebook
Page: 150
ISBN: 9781137397102
Format: pdf
Publisher: Palgrave Macmillan


During the sovereign debt crisis in Europe, the so called Big Three rating Big Three did either not realize the true credit risk or that their decisions were biased by Figure 1: Sovereign Credit Ratings during the Euro Crisis. For Dagong, China's leading credit rating agency, the renminbi's notably downgrading US government debt, but it rejects accusations of bias. Equation estimates of how regime type affects bond ratings (or interest rates) may run afoul of selection bias. US regulators have yet to solve the problem of biased credit rating opinions. Credit rating agency opinions have been subject to country bias, possibly influencing Europe's debt crisis. Does not necessarily explain the upside bias in sovereign credit ratings, but may. Keywords: sovereign debt ratings, credit rating agencies, rating transitions. Keywords: Credit Ratings, Home Bias, Municipal Debt, Information Production, However, testing for home bias in sovereign credit ratings is. Sovereign credit ratings guide over USD 50 trillion in outstanding sovereign debt and set the ceiling for most corporate credit ratings. Marc Joffe: The traditional credit rating business is broken.