Excerpt
Table of Contents
List of Illustrations
List of Abbreviations
1 Introduction
2 Historical Development of the Rating Agencies and Recent Problems
2.1 Years of Foundation
2.2 The Issuer Pays Model
2.3 Nationally Recognized Statistical Rating Organization
2.4 Recent Rating Problems- The Case of Enron
3 The Financial Crisis 2007 - ?
3.1 Reasons
3.1.1 The Subprime Market
3.1.2 Structured Finance
3.2 The Development
4 The Role of the Rating Agencies- A Model trying to explain
4.1 Ratings Shopping and Asset Complexity
4.2 List of Literature
4.3 A Model of an Asset Auction and a Market for Ratings
4.4 Mandatory Disclosure of Shadow Ratings
4.5 Voluntary Disclosure
4.5.1 The Disclosure Decision
4.5.2 The Acquisition Decision
4.6 The Main Results of the Theoretical Model
4.6.1 The complexity of assets raises the incentive to shop for ratings
4.6.2 Complexity affecting ratings bias
4.6.3 Issuer might prefer more complex assets
4.7 An Empirical Dispute
5 Proposed Solutions and Further Perspectives
6 Conclusion
Appendix I: Global CDO Issuance ($millions)
Appendix II: Sample Cash Structured Finance CDO Structure
Appendix III: Numerical Example of Ratings Shopping
References
- Quote paper
- Malte Henrik Klein (Author), 2010, The Role of Rating Agencies in Financial Crises, Munich, GRIN Verlag, https://www.grin.com/document/162621
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