Sign In
Not register? Register Now!
Essay Available:
Pages:
3 pages/≈825 words
Sources:
Check Instructions
Level:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 14.04
Topic:

Reflection of "The Credit Rating Controversy" Finance Essay (Essay Sample)

Instructions:

Read the attached article and compose a short reflection on the article.
The attached article in the link " The Credit Rating Controversy Council on Foreign Relations(1).pdf" , please check it.
Please make sure you answer all the below components in your reflection.
Instructions:
(1) At the top of the page, list the name of the article, the author, and publication where it is sourced.
(2) The body of the reflection will have four parts. Each part is a separate paragraph. Note that a paragraph is more than a couple of sentences.
Part (a) - What are the main idea(s) that the author presents in this article?
Part (b) What is the author's position(s) on the ideas that are presented?
Part (c) - What did you learn from the article?
Part (d) - Do you agree or disagree with the author's position? Why?
NEED TO SUMBIT ON THE Turnitin, software to check for plagiarism against other written materials. Make sure you did your own work

source..
Content:


Reflection of "The Credit Rating Controversy"
Student Name
Institutional Affiliation
Reflection of "The Credit Rating Controversy"
Article Name: The Credit Rating Controversy
Authors: James M. Lindsay and
Publication: Council on Foreign Relations
Rating agencies are expected to give comfort regarding the ability of an issuer to repay a debt. Ratings are critical because they assist in determining the level of interest that a borrower should pay. When Rating agencies issue inaccurate ratings, the move distorts the prices of debt instruments and the interest rates payable on them. Over the years, inaccurate ratings have led to asset bubbles that ultimately burst, hence interfering with the operation of the financial markets.
In this article, the Council of Foreign Relations (CFR) highlights the contribution of the “Big Three” global credit rating agencies i.e. Standard and Poor’s (S&P), Moody’s, and Fitch Ratings financial crises over the years. Firstly, the authors indicate that while the three rating agencies are expected to advise investors regarding the riskiness of different types of debt, they have resulted in exacerbating the financial crisis. The inability of the agencies to offer favorable evaluations regarding the solvency of financial institutions has led to the approval of extremely risky mortgage-related securities (Lindsay & Steil, 2015). Secondly, the authors indicate the shortcoming of the “issuer-pay” business model used by the rating agencies. 

...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Recent Finance Article. Accounting, Finance, SPSS Essay
    Description: A bond is an agreement between the holder and issuer that requires the latter to pay the former the agreed amount after a specific period. The article “After a Wild and Profitable Ride, Bonds Can Still Provide Safety” by Carla Fried depicts that bonds can be unpredictable. In 2018, bondholders suffered...
    2 pages/≈550 words | APA | Accounting, Finance, SPSS | Essay |
  • New cutting edge FinTech projects. Accounting, Finance, SPSS Essay
    Description: FinTech is when companies form a business with a business model of combining financial sector and technology. There is also a disruptive technology that entered the scene in 2009 known as blockchain technology....
    2 pages/≈550 words | APA | Accounting, Finance, SPSS | Essay |
  • Transactions and Accounting Standards Codification(ASC)
    Description: Electro-Motive has signed a contract with a French manufacturer that supplies the company with merchandise for resale to other consumers. Scrutinizing the company's inventory indicates that the payment has been scheduled to take place 60 days after receiving merchandise....
    2 pages/≈550 words | APA | Accounting, Finance, SPSS | Essay |
Need a Plagiarism Free Essay?
Submit your instructions!