• Medientyp: E-Book
  • Titel: How Did Increased Competition Affect Credit Ratings?
  • Beteiligte: Becker, Bo [Verfasser:in]; Milbourn, Todd T. [Sonstige Person, Familie und Körperschaft]
  • Erschienen: [S.l.]: SSRN, [2010]
  • Erschienen in: Harvard Business School Finance Working Paper ; No. 09-051
  • Umfang: 1 Online-Ressource (49 p)
  • Sprache: Ohne Angabe
  • DOI: 10.2139/ssrn.1278150
  • Identifikator:
  • Entstehung:
  • Anmerkungen: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 21, 2010 erstellt
  • Beschreibung: The credit rating industry has historically been dominated by just two agencies, Moody's and Samp;P, leading to longstanding legislative and regulatory calls for increased competition. The material entry of a third rating agency (Fitch) to the competitive landscape offers a unique experiment to empirically examine how in fact increased competition affects the credit ratings market. Increased competition from Fitch coincides with lower quality ratings from the incumbents: rating levels went up, the correlation between ratings and market-implied yields fell, and the ability of ratings to predict default deteriorated. We offer several possible explanations for these findings that are linked to existing theories
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