Salient to Investors: Moody’s Investors Service said the US Aaa credit rating outlook remains stable, short-term outlooks for most indicators are positive, but spending on social programs will put pressure on budget deficits and the rating toward the end of the decade. Steven Hess at Moody’s sees accelerating economic growth as
READ MORE... →Salient to Investors: John Griffin, Jordan Nickerson and Dragon Tang at the University of Texas said Standard & Poor’s and Moody’s inflated their grades on securitized debt prior to the financial crisis to match each other’s opinions to avoid losing business. CDOs rated AAA by both companies defaulted more often than securities with
READ MORE... →Salient to Investors: Yields on sovereign securities moved in the opposite direction from what ratings suggested in 53 percent of the 32 upgrades, downgrades and changes in credit outlook in 2013, versus the longer-term average of 47 percent of over 300 changes since 1974. The IMF reported in January 2012 that prices
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