Tag:
default risk
Latest Headlines
Latest Headlines
Funds look for ways to short the muni market
You have to credit Meredith Whitney with one thing: She really galvanized people to take a look at the muni market. Some have decided she and other super bears are nuts. Others are nervous and looking to hedge.
That brings up an interesting issue raised by the Financial Times . How do you g
CDSs a poor indicator of default risk?
Over the past few years, the financial world has turned to the CDS market for a gauge on default risk of specific debt issues. If a company or country runs into trouble, we expect CDS spreads to widen. But how well do derivatives gauge default risk?
Fitch performed an analysis that suggests th
Ratings agencies can't win
Standard & Poor's, Moody's and Fitch have all been roundly criticized for their rosy ratings of mortgage-backed-related issues. They didn't start downgrading until it was way too late. Ever sensitive to the criticism, you can't blame them for considering methodology changes to commercial mortg
Large companies suffering most in crunch
Most of us would assume that in any period of credit tightening, small companies, which tend to be more volatile, suffer most. But a recent Fed lending survey shows that 95 percent of banks have tightened credit for big companies but only 90 percent have tightened for small companies.
The Fi
Credit ratings agencies unmasked?
Just when you thought the credit rating agencies could not be more demonized comes a New York Times magazine piece that wraps it all up in one lengthy article--with a focus on Moody's. And I do mean lengthy. Much of the substance was known. And there is no need to rehash the litany of rea
