CEU Electronic Theses and Dissertations, 2010
| Author | Avila Barreiro, Rodrigo |
|---|---|
| Title | Assessing the role of regulation and corruption in capital market failures: the case of credit rating agencies and structured finance |
| Summary | This paper seeks to explain why rating agencies failed to rightly assess the creditworthiness and risks associated with the issues they rated in the structured finance market previous to the financial crisis of 2008. In doing so, it advances the argument that on the one hand the regulatory framework governing capital markets in the USA settled a pervasive combination of factors that allowed CRAs to disregard the quality of their ratings. As theory predicts, the rules providing incentives and constraints to participants in the market of structured finance influenced the way actors behaved. On the other, this paper also argues that the unreliability of the structured finance ratings delivered by CRAs was not only product of the rules of the game governing this sector of capital markets but was also related with practices of corruption that penetrated the relationship between debt issuers, rating agencies and investors. |
| Supervisor | Agnes Batory |
| Department | Public Policy MA |
| Full text | https://www.etd.ceu.edu/2010/avila-barreiro_rodrigo.pdf |
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