Disagreement between rating agencies and bond opacity: A theoretical perspective

Achim Hauck, Ulrike Neyer

Research output: Contribution to journalArticle

5 Citations (Scopus)
33 Downloads (Pure)

Abstract

In this paper, we explicitly model a bond rating process under varying degrees of bond opacity and derive conditions under which disagreements between rating agencies (rating splits) can serve as a useful proxy for opacity in empirical analyses.
Original languageEnglish
Pages (from-to)82-85
Number of pages4
JournalEconomics Letters
Volume123
Issue number1
Early online date1 Feb 2014
DOIs
Publication statusPublished - 1 Apr 2014

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Keywords

  • Opaque assets
  • Ratings
  • Rating agencies
  • Rating splits

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