The Credit Rating Crisis

  title={The Credit Rating Crisis},
  author={Jennifer Dlugosz},
  • Jennifer Dlugosz
  • Published 2010
By December 2008, structured finance securities accounted for over $11 trillion worth of outstanding U.S. bond market debt (35%). The lion’s share of these securities was highly rated by rating agencies. More than half of the structured finance securities rated by Moody’s carried a AAA rating—the highest possible credit rating. In 2007 and 2008, the creditworthiness of structured finance securities deteriorated dramatically; 36,346 tranches rated by Moody’s were downgraded. Nearly one-third of… CONTINUE READING
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