Credit rating agency failures continue despite EU reforms, paper finds
Bond issuers are still “shopping” for good ratings, ECB paper says
European Union regulations have reduced some failures in credit ratings’ agencies’ assessment of securities, but not all, a research paper finds.
In The impact of regulatory changes on rating behaviour, published by the European Central Bank (ECB), Nodirbek Karimov, Alper Kara, Gareth Downing and David Marques-Ibanez examine conflicts of interest between ratings agencies and issuers of securities.
The authors look at a sample of 12,469 tranches of asset-backed securities, or ABS, issued between
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