O'Reilly logo

Restoring Confidence In The Financial System: See-through leverage: a powerful new tool for revealing and managing risk by Sean Tully, Richard Bassett

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

3: Rating Agencies And The Shadow Banking System

Chapter summary

In this chapter we will go over the history of the credit-rating agencies, the role they play, the way they rate structured credit products, and how the shadow banking industry was built around them. We will also give descriptions of the new structured products the rating agencies supported. In the process we will avoid the rather simplistic condemnation of the rating agencies that has become prevalent in so many books about the crisis, and which in our view prevents a rational analysis of the root causes of the problem.

  • Rating agencies play a crucial role in the fixed income markets as the accepted determiners of risk for investors, regulators and issuers. Under Basel II, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required