Did Asset Complexity Trigger Ratings Bias? [chapter]

Vasiliki Skreta, Laura Veldkamp
2011 Lessons from the Financial Crisis  
Most market observers attribute the recent credit crunch to a confluence of factors: excess leverage, opacity, improperly estimated correlation between bundled assets, lax screening by mortgage originators, and market-distorting regulations. It was the job of the credit rating agencies to create transparency, to provide the basis for risk-management regulation, and to discipline mortgage lenders and the creators of structured financial products by rating their assets. Understanding the origins
more » ... anding the origins of the crisis requires, at least in part, understanding the failures of the market for ratings.
doi:10.1002/9781118266588.ch33 fatcat:jtwmuh7u4rbthoek5lkgy5e2g4