Tag:
Creditworthiness
Latest Headlines
Latest Headlines
Backlash against S&P continues
We've noted before that the ultimate irony in the controversy over Standard & Poor's decision to downgrade Treasury debt to AA+ from AAA was that the Treasury market soared. Yields tanked. Heck, people are all of sudden talking about refinancing again.
In article headlined, "Investors Down
The ultimate irony: Treasuries soar!
Standard & Poor's decision--whether foolish or smart--led to a lot of angst in the markets, as big institutions sold out of stocks and sought safe haven of ... Treasury securities.
Now hold on a second. Didn't S&P just declare to the world that the creditworthiness of the U.S. governme
S&P to face withering backlash, investigations likely?
"Pardon me for asking, but who gave Standard & Poor's the authority to tell America how much debt it has to shed, and how?"
Robert Reich poses a good question, noting that the downgrade of U.S. Treasuries came at a very bad time. My sense is that all the headlines and controversy may come
Standard & Poor's U.S. downgrade dilemma
As the debt crisis muddles on, the big credit rating agencies--mainly Standard & Poor's and Moody's--injected themselves into the debate by making clear that the AAA ratings for U.S. Treasuries were at risk. Both said that a deal to raise the debt ceiling was not necessarily enough to en
New era of free speech for ratings agencies?
Rating agencies like Moody's and Standard & Poor's have often argued that since they merely offer an opinion on creditworthiness, they cannot be sued because they have a right to free speech. But Fortune notes a recent case in which a judge seems to be taking a skeptical, fresh look at the
Bank to tie hedge fund lending to their own CDSs
The Financial Times reports that Morgan Stanley and Goldman Sachs have developed systems that tie their lending commitments to hedge funds to the value of their own credit default swaps. As the price of CDS "insurance" grows, the amount they are willing to commit declines. Goldman Sach
