tag:blogger.com,1999:blog-8764541874043694159.post7820894475885013744..comments2024-03-28T12:23:39.665+00:00Comments on Coppola Comment: Shut down the ratings agenciesFrances Coppolahttp://www.blogger.com/profile/09399390283774592713noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-8764541874043694159.post-73759911294324327792020-04-30T20:58:12.923+01:002020-04-30T20:58:12.923+01:00Isn't it supposed to come into affect, only if...Isn't it supposed to come into affect, only if no trade agreement is reached?anker soundcore prohttps://www.reviewandshop.com/anker-soundcore-pro/noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-21991765157860538142020-04-13T19:37:23.956+01:002020-04-13T19:37:23.956+01:00Hi Frances
Thanks for your commentary and insight...Hi Frances<br /><br />Thanks for your commentary and insights. I am wondering your thoughts on the new COVID-19 facilities that have been put out by the Fed. Is the Fed lending reserves to money market funds via the money market mutual fund facility or what is the liability of the Fed if not reserves? Can they even make outright loans to non-banks? I thought the Fed could only lend reserves to banks and not non-bank participants. How is it funding the SPVs as part of the main street lending program? If the Fed is lending out reserves to non-bank participants, that would seem to be a new paradigm for central banks.<br /><br />DaveAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-71386577180182417332020-04-02T19:01:40.757+01:002020-04-02T19:01:40.757+01:00Totally agree with shutting down the rating agenci...Totally agree with shutting down the rating agencies, and also agree they only follow market reactions, never ever lead.<br /><br />My question is, how do you then differentiate between fiscally responsible vs reckless countries (or companies)? Clearly investors are too lazy to do the work themselves and need a letter assigned to their holdings.MSnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-84044285755234442002020-04-02T08:48:00.686+01:002020-04-02T08:48:00.686+01:00I agree with 2 remarks.
I observed that in emerg...I agree with 2 remarks. <br /><br />I observed that in emerging or developing markets/economies the agencies' work is quite superficial. They over-/underestimate risk surprisingly often. Then they rush to correct when something happens and inevitably overshoot. Maybe it's the language barrier, maybe access, maybe lazyness...<br /><br />The fact that they have to be paid for their assessments, without any oversight, is a gaping conflict of interest.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-39711953119891672192020-04-02T07:12:47.424+01:002020-04-02T07:12:47.424+01:00Thank you and RP for bringing some rational points...Thank you and RP for bringing some rational points to a rather limited perspective provided in the article. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-52845057497581967102020-03-30T10:27:42.124+01:002020-03-30T10:27:42.124+01:00Thank you Frances.
Your view is completely sharea...Thank you Frances. <br />Your view is completely shareable. Dariohttps://www.blogger.com/profile/10109690304087836253noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-78990527076399725162020-03-29T18:15:00.025+01:002020-03-29T18:15:00.025+01:00Is the job of the rating agencies to artificially ...Is the job of the rating agencies to artificially reduce funding costs for issuers? Certainly not. They exist for creditors, pure and simple. If they were to start ignoring fundamentals they would no longer have a function. Rating actions can be procyclical, especially in the case of fallen angels, but I don't think downgrading sovereigns from AA+ to AA- impacts funding costs. The literature demonstrates that is the case. <br /><br />And what do you propose? The end of market discipline? Discipline is the device that encourages issuers to have healthy balance sheets in normal times. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-8576182646522456842020-03-29T18:12:06.924+01:002020-03-29T18:12:06.924+01:00Hi Simon,
yes, I agree.
I am arguing against the...Hi Simon,<br /><br />yes, I agree.<br /><br />I am arguing against the idea that rating agencies should take into account moral or sympathy values when assigning a rating. RPhttps://www.blogger.com/profile/17695303458973909485noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-59699536570193399972020-03-29T16:31:24.167+01:002020-03-29T16:31:24.167+01:00RP - I'm not sure the ratings agencies have th...RP - I'm not sure the ratings agencies have the knowledge in the current situation to rate anything as also was the case in 2008 where they provided AAA ratings which turned out to be anything but. Any rating is by and large meaningless in such times and agencies ability to determine risk is just a random guess. Their opinions provide no meaningful additional information. Simon Grayhttps://www.blogger.com/profile/16840677211500386406noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-5708157827345487612020-03-29T13:53:51.367+01:002020-03-29T13:53:51.367+01:00Thank you for sharing your professional knowledge....Thank you for sharing your professional knowledge. Now you have one regular visitor to your site for new topics.Darina Confidushttp://www.confiduss.com/en/jurisdictions/greece/economy/noreply@blogger.comtag:blogger.com,1999:blog-8764541874043694159.post-63313189171312265412020-03-29T04:43:10.700+01:002020-03-29T04:43:10.700+01:00It would surely be a slippery slope if rating agen...It would surely be a slippery slope if rating agencies also considered morals or sympathy and made adjustments to ratings based on them? The capital markets do not give any consideration to the wellbeing of humans, only the preservation and growth of capital.<br /><br />Greece lied its way into Europe. Now, I like the Greeks, but it doesn't mean I am prepared to bail them out financially without being told the risk. Or if a hospital is financially in difficulty, then it is surely not the job of the markets to support it? The markets are not the source of charity funds.<br /><br />Rating agencies are there to determine the risk of the borrower based on hard metrics. Which is difficult enough. To add in a +/- fudge factor based on somebody's personal moral position of the day would be to call into question the whole of the rating agency's assessments and thereby politicise the whole edicifice.<br /><br />RPhttps://www.blogger.com/profile/17695303458973909485noreply@blogger.com