If it is not absurd to talk about digital money, it certainly isn't absurd to talk about digital credit ratings. In fact, there are good reasons to move towards a digital credit rating system sooner rather than later. Here are three:- Digital talks to machines as...
Last week, a press release announced the launch of a credit scoring application of AI to natural-language processing and news media text analytics. Reading it, I wondered how many people had the confidence in their judgment to parse the offering. Just because a tool uses...
This rating is based on CSC's Multifamily Method applied to previous and expected future transactions to be financed via the Facility. CSC's rating is subject to periodic review pursuant to each transaction financed via the Facility....
In a recent Thomas Day posting about the recent bond sell-off triggering concerns about the maturing low IG debt at the median of the issuer distribution for US, European and other credit markets. Is it really still BBB? Was it ever really BBB? asks Dr. Chris Donegan CDO markets around...
Charlan Nemeth teaches graduate level psychology at UC Berkeley. She has conducted scholarly research on the psychology and impact of dissent on decision-making in different professional settings (courtroom, laboratory, new business ventures) for decades. In 2018, she published the definitive synthesis of her findings in a...
In his autobiography, Henning Mankell as he was battling cancer wrote of a famous family portrait from the early 1770s. Gathered around Gustaf Frederik Hjortberg are his wife Anna Helena and their fifteen children, including the ones already dead. Mankell wrote, Their brief visit to this earth was...
Over the past week, the 7-day interest rates dropped to 2.2%, as low as the rate at beginning of this year; while the 10-year yield curve rates rose to 3.2%, hitting a new high for 2019. Rising risk-free rates reflect the change of market expectation...
To Boomers, shave and a haircut, two bits brings back memories of Looney Tunes. It's also the essence of what is wrong with structured finance credit ratings. Wait, do structured finance credit ratings still need fixing? Many assume the answer is "no" because the causes of the GFC are no...
According to the 21st Century Economics website, China's National Inter-bank Funding Center has issued a detailed implementing ruling for disposing of defaulted obligations through repurchase approved by the PBOC on 17 June 2019. The ruling applies when a repurchasing-purchaser triggers an event of default in a...