Feedback Effects of Credit Ratings

Abstract

Rating agencies are often criticized for being biased in favor of borrowers, for being too slow to downgrade following credit quality deterioration, and for being oligopolists. Based on a model that takes into account the feedback effects of credit ratings, I show that: (i) rating agencies should focus not only on the accuracy of their ratings but also on… (More)

Topics

6 Figures and Tables

Cite this paper

@inproceedings{Manso2011FeedbackEO, title={Feedback Effects of Credit Ratings}, author={Gustavo Manso}, year={2011} }