tag:blogger.com,1999:blog-3764912039741974037.post1010268173409909661..comments2024-03-10T06:35:25.018-04:00Comments on Expect[ed] Loss: SEC Shines a Light on Inflated CMBS RatingsPF2http://www.blogger.com/profile/13893025381406343985noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3764912039741974037.post-30383179996869534062015-01-26T10:16:15.029-05:002015-01-26T10:16:15.029-05:00One of the fundamental problems with the rating no...One of the fundamental problems with the rating nomenclature is the misperception, and lack of understanding, of the meaning of the ratings. Even with subscripts and asterisks, investors continue to lump Aaas in one pile, and an unspoken assumption remains: "Aaa securities are inherently stable". For so long as legal descriptions of the meaning of the rating continue to temporize the duration of the rating, and finesse the arbitrage of end-user expectations that the measure of current risk is necessarily inversely proportional to ratings volatility, the rating agencies will prosper at the expense of ... taxpayers.<br />Rick MichalekUnknownhttps://www.blogger.com/profile/12919417615372996057noreply@blogger.com