Bond markets and credit rating agencies

Andrea Miglionico

Chapter 21 in Research Handbook on Global Capital Markets Law, 2023, pp 334-348 from Edward Elgar Publishing

Abstract: The debate about the authority of credit rating agencies (CRAs) in the capital markets has changed in the wake of the regulatory responses to the faulty assessments made during the global financial crisis. Notwithstanding their role as information intermediaries, CRAs pose a systemic threat for investors and corporations given the significant influence of rating statements in the creditworthiness of firms. Restricted competition and the ‘issuer-pays’ business model provide little incentive for CRAs to draw up timely evaluations of debt issuers. This chapter argues that the lack of alternatives to ratings means that they remain embedded in financial regulations, and it is unlikely that regulators will erode their position in the securities industry.

Keywords: Economics and Finance; Law - Academic (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800379305/9781800379305.00031.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:20368_21

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().