![[Search]](/static/images/search.gif){kind=small}
![[A-Z Index]](/static/images/az.gif){kind=small}
![[Contact]](/static/images/contact.gif){kind=small}
![[University of Cambridge]](/static/images/identifier2.gif){kind=small}
![[Talks.cam]](/static/images/talkslogosmall.gif)
Joel Shapiro is Associate Professor of Finance at Saïd Business School, University of Oxford 
Thursday 19 February 2015, 13:00-14:00
Credit Ratings and Structured Finance
- 👤 Speaker: Joel Shapiro is Associate Professor of Finance at Saïd Business School, University of Oxford 🔗 Website
- 📅 Date & Time: Thursday 19 February 2015, 13:00 - 14:00
- 📍 Venue: 10 Trumpington Street
Abstract
The poor performance of credit ratings on structured finance products has prompted investigation into the role of Credit Rating Agencies (CRAs) in designing and marketing these products. We analyze a two-period reputation model where a CRA both designs and rates securities that are sold to different clienteles: un-constrained investors and investors constrained by minimum quality requirements.When quality requirements for constrained investors are higher, rating inflation increases. Rating inflation decreases if the quality of the asset pool is higher. Securities for both types of investors may have inated ratings. The motivation for pooling assets derives from tailoring to clienteles and from reputational incentives.
Series This talk is part of the Cambridge Finance Workshop Series series.
Included in Lists
- 10 Trumpington Street
- All Talks (aka the CURE list)
- Cambridge Finance Workshop Series
- Cambridge Judge Business School
- CERF and CF Events
- Interested Talks
Note: Ex-directory lists are not shown.