Fight against rating inflation only partly successful – ECB study
ABS issuers still shop around for credit ratings despite tougher EU regulations, paper finds
Tougher regulations have only partly succeeded in stopping credit rating agencies from inflating their classifications of structured finance products, a European Central Bank (ECB) study finds.
In their report, Nodirbek Karimov, Alper Kara, Gareth Downing and David Marques-Ibanez examine asset-backed securities (ABSs) issued in Europe during two periods. They look at the lead-up to the global financial crisis that started in 2008; and afterwards, when the European Union introduced regulations.
The
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