Mon, Mar. 2, 11:52 AM
- The soon-to-be new owners of Canadian rater DBRS, Carlyle Group (CG +0.2%) and Warburg Pincus hope to double or triple the company's market share over the next five to ten years. DBRS currently has 2% of the lucrative ratings market dominated by Standard & Poor's (MHFI +0.4%), Moody's (MCO -0.2%), and Fitch - the three combine for 95% market share, about the same as prior to the financial crisis.
- A group led by Carlyle and Warburg hope expect to close on their more than $500M purchase of DBRS early this week.
- Despite calls from regulators, investors, and critics in general, upstarts in ratings have struggled to make any headway against the Big Three. One notable obstacle: Many investors have bylaws requiring paper they buy to be rated by either S&P or Moody's.
- Instead of challenging the group on its strongest turf - municipal and U.S. corporate debt - DBRS will look to for opportunity in Europe and emerging markets.
Wed, Feb. 25, 4:48 PM
- Terry McGraw III had been CEO until Nov. 2013 when company policy forced him to retire at the age of 65. Now he plans to relinquish the chairmanship of the company his great-grandfather founded following a board meeting in late April.
- Ed Haldeman - who ran Freddie Mac - after the financial crisis - has been tapped to take his spot as chairman of MHFI.
- Source: Press release
Thu, Feb. 12, 7:15 AM| Comment!
Wed, Feb. 11, 5:30 PM
- AAP, AAWW, AB, ACOR, ANR, APA, AVP, BG, BWA, CAB, CCE, COR, CPLA, CS, CVE, DBD, DPS, FAF, FLO, GNC, HE, HERO, HIMX, HSP, IFF, INCY, JAH, K, LMNS, LNCE, LPNT, MANU, MDWD, MFA, MFC, MHFI, MINI, MPEL, MPW, NCI, NLSN, NNN, NRP, NWE, PDS, PNK, Q, RDN, RTIX, RWLK, RYN, SCOR, SHPG, SKYW, SNI, SON, SPW, STC, THS, TIME, TU, VG, VNTV, WD, WSO, WWAV, WWE
Tue, Feb. 3, 2:50 AM
- Standard & Poor’s (NYSE:MHFI) has reached a $125M deal with Calpers to resolve a lawsuit stemming from losses the pension fund suffered after the housing market collapsed and formerly AAA-rated MBS defaulted.
- S&P is expected to announce the settlement today, in addition to its record $1.37B settlement with the DOJ over inflated ratings it gave prior to 2008.
- Fitch Ratings and Moody’s Investors Service (NYSE:MCO) were also named in the Calpers suit.
- Previously: S&P backs off from 'retaliation' claim (Feb. 02 2015)
Mon, Feb. 2, 6:15 AM
- Standard & Poor’s (NYSE:MHFI), which is nearing a $1.37B settlement over inflated ratings it gave on MBS prior to 2008, has backed away from its claim that the DOJ sued it in retaliation for its decision to cut the credit rating of the U.S. in the summer of 2011.
- The concession will appear as one element in a broader statement of facts that S&P negotiated with state and federal authorities.
Mon, Feb. 2, 1:52 AM
- The DOJ is investigating Moody's Investors Services (NYSE:MCO) over the inflated ratings it gave to shoddy mortgage bonds in the lead-up to the financial crisis, WSJ reports.
- However, it isn’t yet clear whether the probe will result in a lawsuit, as Justice Department lawyers are still in the early stages of their investigation.
- The probe comes as the S&P (NYSE:MHFI) nears a $1.37B settlement for similar alleged conduct.
Wed, Jan. 28, 3:12 PM
- An agreement isn't yet final, but McGraw Hill Financial's (MHFI -1.8%) S&P as early as tomorrow could strike a deal to pay $1.37B to the DOJ and 12 states to settle charges it knowingly inflated ratings on MBS prior to the financial crisis.
- The settlement would be the largest amount paid by a ratings agency, the group of which has gotten away relatively unscathed (legally speaking) from its actions leading up to the financial crisis.
- Last week S&P settled with the SEC over actions from well after the bust-up.
Fri, Jan. 23, 3:53 PM
- “The ban is more of a reputational hit than an economic one,” says an asset manager. "The impact will be relatively constrained to nonexistent.”
- The SEC earlier this week suspended S&P (MHFI +0.2%) for one year from rating CMBS backed by multiple borrowers as part of a penalty over claims it bent ratings criteria to win business. S&P, however, only rated 9% of those deals last year, according to Commercial Mortgage Alert. in contrast, the company rated 82% of all offering tied to single borrowers - and it's not banned from that business.
- Previously: S&P to pay $58M, take "time-out" in SEC settlement (Jan. 21)
Wed, Jan. 21, 9:29 AM
- McGraw Hill Financial (NYSE:MHFI) unit Standard & Poor's settles with the SEC over charges it fudged rating criteria in 2011 to try and win more business.
- S&P will pay a total of $58M in fines and take a one year "time-out" from making ratings on any new U.S. conduit/fusion CMBS.
- S&P also agrees to pay $19M to New York and Massachusetts to settle investigations by those states.
- Previously: Bloomberg: S&P faces suspension from CMBS ratings (Jan. 20)
Tue, Jan. 20, 2:58 PM
- As part of a $60M settlement with the SEC, McGraw Hill Financial (MHFI -0.2%) unit Standard & Poor's will be suspended for a year from rating securities in the largest piece of the CMBS market, according to Bloomberg's source.
- The SEC has been probing S&P over whether it bent criteria in order to win business in 2011. In addition to SEC penalties, S&P is facing sanctions/fines over investigations by the states of New York and Massachusetts.
Tue, Jan. 13, 3:26 AM
- Standard & Poor’s (NYSE:MHFI) is nearing a $1B settlement with the DOJ over the inflated ratings it gave to shoddy mortgage bonds prior to 2008, and may agree to settle the case as early as this quarter, Bloomberg reports.
- Ratings agencies have remained largely unscathed by the litigation ensuing after the financial crisis, although the Justice Department has secured settlements worth tens of billions of dollars during the past two years from mortgage lenders and banks.
Dec. 26, 2014, 1:40 AM
- S&P (NYSE:MHFI) is nearing a joint settlement with the SEC, NY AG Eric Schneiderman and Massachusetts AG Martha Coakley over their investigation of how the company graded its commercial mortgage-backed securities in 2011.
- Besides a potential suspension, S&P is expected to receive a fine of at least $60M.
- The case is separate from the DOJ's $5B lawsuit filed in February 2013, which accused the agency of inflating ratings before the financial crisis.
Dec. 12, 2014, 12:49 PM
- In a deal valued at nearly $2B, Hearst Corporation will purchase another 30% interest in Fitch Group from Fimalac, which will retain a 20% interest in the ratings agency.
- Hearst CEO Steven Swartz: "Strategically, Hearst continues to diversify into data and information-based companies while growing its world-class media assets."
- McGraw Hill Financial (MHFI -1.3%) remains lower on the session, but has perked up since the news hit. Moody's (MCO -1.7%) has added a bit as well, though the reaction is more subdued.
- Source: Press Release
Dec. 8, 2014, 4:29 PM
- At issue are SEC charges S&P (MHFI -2%) bent rating criteria in 2011 in order to win business, and - if you believe stories the stories about Tim Geithner's fury - S&P's decision to downgrade the U.S. credit rating.
- S&P parent McGraw Hill Financial and the SEC have been in settlement talks for some time, with the SEC, reports Bloomberg, wanting the suspension as part of a deal.
- S&P is also facing a separate $5B suit filed by the DOJ over its inflating of ratings on residential mortgages.
- Shares are lower by 0.4% after-hours, following the sizable drop on the news late in the regular session.
Nov. 25, 2014, 2:46 PM
- "Not surprisingly, billionaires reduced their energy allocations (NYSEARCA:XLE) during Q3," says Direxion, unveiling the quarterly rebalance for the iBillionaire Index (which serves as the benchmark for the IBLN ETF). Attention was instead shifted to healthcare (NYSEARCA:XLV) and materials (NYSEARCA:XLB), with companies like Humana (NYSE:HUM) and Monsanto (NYSE:MON).
- Also added to the index: TMO, GM, FB, CBS, GOOG, MAS, APD, DAL, NOV, WHR, THC, ABBV.
- Dropped from the index: AIG, MCK, CTSH, MSI, RIG, CI, APC, GPS, MSFT, CMCSA, NFLX, MHFI, WMB, ICE.
- Outlying sectors: Consumer Discretionary (NYSEARCA:XLY) makes up 23.33% of the iBillionaire Index vs. 11.68% for the S&P 500, and Industrials (NYSEARCA:XLI) and financials (NYSEARCA:XLF) make up just 6.67% each of the index vs. 10.44 and 16.30 of the S&P 500, respectively. Consumer Staples (NYSEARCA:XLP) have zero representation in the index vs. 9.7% in the S&P 500.
- Previously: Direxion launched an ETF with iBillionaire today
MHFI vs. ETF Alternatives
Other News & PR