A solution to ABS rating caps — do it yourselves

By Tom Porter
19 Jun 2014

Now even the European Central Bank is having a go at the poor ratings agencies for having the wrong opinions on ABS ratings. More investors should be taking the decision into their own hands, but to do so they need greater transparency.

ECB board member Yves Mersch considers the rating agency practice of applying a maximum rating uplift to ABS transactions from their sovereign so detrimental to the revival of the market in Europe, that it was one of three ‘next steps’ for the market outlined in his keynote speech to ...

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