Credit rating agencies (CRAs) play a central role in the debt (bond) markets of many
countries. CRAs have also attracted a considerable amount of public and policy attention …

We study an optimal disclosure policy of a regulator that has information about banks (eg,
from conducting stress tests). In our model, disclosure can destroy risk-sharing opportunities …

This paper develops a theoretical framework to shed light on variation in credit rating
standards over time and across asset classes. Ratings issued by credit rating agencies …

We develop a rational expectations model in which an issuer purchases credit ratings
sequentially, deciding which to disclose to investors. Opacity about contacts between the …

An enduring puzzle is why credit rating agencies (CRAs) use a few categories to describe
credit qualities lying in a continuum, even when ratings coarseness reduces welfare. We …

We explore through both an economics and regulatory lens the frictions associated with
credit rating agencies in the aftermath of the financial crisis. While ratings and other public …

Abstract Theory predicts rating agencies' incentive conflicts to be stronger in boom periods,
leading to biased ratings and a reduced level of rating quality. We investigate this prediction …

We consider the role of credit ratings when contracts between investors and portfolio
managers are incomplete. In our model, a credit rating and a price on a risky bond both …

We propose a parsimonious model of over-the-counter trading with asymmetric information
to rationalize the existence of intermediation chains that stand between buyers and sellers of …

Credit rating agencies produce public statements about the financial health of companies,
institutions, geographical entities and financial assets. The main available information about …