Cate Long

http://shopyield.com
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4 Comments

    • Fri Oct 10th 14:38 PM | Rating: 0 0
      Commented on:
      What Does JPMorgan Think?
      Final Results of the Lehman Brothers Auction, Friday 10th October 2008

      Final Price: 8.625
      On Friday 10th October 2008, 14 dealers submitted inside markets, physical settlement requests and limit orders to the Lehman Brothers auction administered by Creditex and Markit to settle trades across the market referencing Lehman Brothers.

      The inputs and results are detailed below.

      Dealer Inside Markets

      www.creditfixings.com/...
      View article »
    • Fri May 23rd 16:52 PM | Rating: 0 0
      Commented on:
      Annals of Pathetic CEO Communication, Moody's Edition
      The article in the Financial Times about Moody’s problems with their models for rating CPDOs raises lots of issues… Moody’s is stating that problems with computer coding for the asset lead to the improper assignment of AAA ratings…

      shopyield.com/blog/200.../

      View article »
    • Tue Feb 12th 08:26 AM | Rating: 0 0
      Commented on:
      Egan Jones is Conflict Free? Not a Chance
      The Credit Rating Agency Reform Act of 2006 (CRARA) allows all business models for raters.

      Issuer pay, user pay or new business models that have yet to be defined.

      The important part of this is the accuracy of the ratings as Mr. Brown says above.

      One vital method of determining raters accuracy is the default rates for the various levels of ratings.

      CRARA requires that raters publish these default statistics on annual basis.

      SEC Chairman Cox announced last Friday that the Commission will go further and require some standardization of these stats.

      So in the not too distant future we can begin to evaluate how all the raters are doing in terms of accuracy.

      And parse out any conflicts of interest embedded in the accuracy.

      shopyield.com
      View article »
    • Wed Dec 5th 09:36 AM | Rating: 0 0
      Commented on:
      Despite Their Faults, Ratings Agencies Are Better Than the Alternatives
      Good article... thanks for your comments...

      It’s a complex issue… this NRSRO issue… but we have created remedies for far more difficult problems… here are some of the proposed regulatory solutions…

      Allow the SEC inspection to be completed - hold additional action (CC)

      Adopt “equivalent disclosure” for issuer communication with NRSROs (JC) (CK) (CL)

      Confer additional regulatory authority to the SEC (SS)

      Increase the SEC’s NRSRO oversight budget (AL)

      Delink analyst compensation from business development (AL)

      Issuer public disclosure of NRSRO fees and consulting (AL) (CK)

      Improve transparency of rating triggers in structured finance (AL)

      NRSROs should be held liable for malfeasance (AL)

      Give issuer audit committees oversight of the NRSRO relantionships (AL)

      SEC to monitor the accuracy of ratings methodologies (AL)

      Create “cooling off” period for NRSRO analysts (AL)

      Grant the SEC authority to revoke NRSRO status (AL) (JC)

      Ban the “issuer pay” model of NRSROs

      Altering the methods of NRSRO compensation (CK)

      Institute rotations among NRSROs for issuers (CK)

      Standardize the reporting and meaning of rating symbols by asset class (JC)

      Improve the transparency of underlying debt products (CK)

      Require complex products to season prior to rating by NRSRO (CK) (JM)

      Separate the advising and rating functions of NRSROs (EM)

      Make the ratings industry non-profit

      Remove the government sanctioned status as NRSROs

      Institutional investor sponsored rating agency (AP)

      Except for the first solution, which would be to allow the Commission to complete its examinations, the other proposals are all potentially interesting in their effects on the ratings industry… stay tuned…

      (AL) = Former SEC Chairman Arthur Levitt
      (AP) = Alex Pollock, American Enterprise Institute
      (CC) = SEC Chairman Chris Cox
      (CK) = House Capital Markets Subcommittee Chairman Kanjorski
      (CL) = Cate Long
      (EM) = Eric Mindich
      (JC) = Professor John Coffee
      (JM) = Professor Joseph Mason
      (SS) = Senate Banking Committee Ranking Member Shelby

      shopyield.com/blog/200.../

      View article »
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