Feedback effects between credit ratings and financial markets

José Jorge

Economic Modelling, 2019, vol. 80, issue C, 328-338

Abstract: Credit rating agencies often make sharp adjustments in their pronouncements during times of stress in financial markets. These adjustments typically happen with a delay relative to shocks in market prices. Since prices convey information about what market participants are doing and thinking, it is likely that rating agencies take into account market prices when issuing their pronouncements.

Keywords: Credit ratings; Roll-over risk; Creditor coordination (search for similar items in EconPapers)
JEL-codes: D82 G18 G24 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:80:y:2019:i:c:p:328-338

DOI: 10.1016/j.econmod.2018.11.019

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