How Long to Read Are Credit Rating Agencies Useful?

How Long Does it Take to Read Are Credit Rating Agencies Useful??

It takes the average reader and 16 minutes to read Are Credit Rating Agencies Useful? by Sabrina Schleimer

Assuming a reading speed of 250 words per minute. Learn more

Description

Seminar paper from the year 2018 in the subject Business economics - Investment and Finance, grade: 1,7, University of Strathclyde (Business School), course: International Financial Markets and Banking, language: English, abstract: This assignment will examine whether credit rating agencies can be regarded as useful. In order to do so, two given academic papers will be analysed and discussed, supplemented by further academic literature. The first of the two is a working paper by Efraim Benmelech called “Credit Ratings: Qualitative Versus Quantitative Information”. The second one is called “What’s Wrong with Credit Ratings” and written by Frank Partnoy. Before looking at these papers in greater detail, it is important to provide a general definition of CRAs. Gavras defines CRAs as “private companies [which] assess credit risk for companies and governments seeking to take out loans and issue fixed-income securities”. Arnold states that this risk assessment comes in the form of a rating, which represents the CRAs’ opinion of the rated entity’s creditworthiness, i.e. its “ability to repay its debt”. Both Gavras and Arnold remark that the rating ultimately affects the price and interest rate paid by the borrower on the debt instrument. Having generally defined CRAs, the authors of the two given papers also provide their own views. Both Benmelech and Partnoy agree with Gavras regarding the importance of CRAs in today’s credit markets and the strong influence these agencies have. They also agree that CRAs played a major part in the 2007/08 financial crisis. In his paper, Benmelech evaluates rating by S&P Global Ratings Inc. and concludes that they are vastly quantitative and, thus, can easily be predicted and substituted “by an algorithm that uses just ten financial variables”. On a similar note, Partnoy believes that rating methodologies are highly uninformative, that numerous reforms after the financial crisis have failed, and that the unchanged overreliance of investors and regulators on these ratings should be reduced.

How long is Are Credit Rating Agencies Useful??

Are Credit Rating Agencies Useful? by Sabrina Schleimer is 16 pages long, and a total of 4,096 words.

This makes it 5% the length of the average book. It also has 5% more words than the average book.

How Long Does it Take to Read Are Credit Rating Agencies Useful? Aloud?

The average oral reading speed is 183 words per minute. This means it takes and 22 minutes to read Are Credit Rating Agencies Useful? aloud.

What Reading Level is Are Credit Rating Agencies Useful??

Are Credit Rating Agencies Useful? is suitable for students ages 6 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

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