LinkedIn Archives - CreditSpectrum (R&R Consulting) - A Credit Ratings, Analysis and Consultancy Firm

20 Feb The Impossibility of Capital Regulation

Posted at 18:19h in LinkedIn

I've thought about this a lot. The more I contemplate the challenges of implementing a fair and effective system of capital regulation for credit risk, the more I appreciate its impossibility. First, a fair and effective system of capital regulation for credit risk involves the measurement...

17 Jan What Moody’s Settlement Means

Posted at 14:08h in LinkedIn

First, it will cost Moody's $864 MM plus other settlement-related expenses. The civil penalties are $437.5 MM, and $426.5 MM will go to the states that joined the Department of Justice, of which (so far) $12.7 MM goes to Indiana, $6.7 MM to Delaware, $19.4 MM...

12 Jan Housing Rules Too Burdensome? Here’s A Real Fix.

Posted at 14:13h in LinkedIn

Ben Carson, in testimony for his Senate confirmation Thursday, said onerous housing rules caused inequality because "the wealthy have their pick of loans" while "those without credit are locked out." Where have we heard this before? In 2002, George Bush said, "We can put light where there's...

27 Jul Financial journalists, know thy history. The credit chasm that caused the Crisis is being crossed.

Posted at 14:14h in LinkedIn

Credit to Pascal Bouvier for highlighting this piece by Annamaria Andriotis, published 7/26/16 in the WSJ, on the re-emergence of near prime. To paraphrase her gist: Subprime consumer lending has re-emerged, with a new name to conceal the risk. But her gist doesn't jibe with the facts. Near prime, Alt-A are well established consumer ABS terms of art. Near prime dates back to the early 1990s,...