Rating agencies come under fire after subprime fiasco

Hybrid Structured Credit Funds: Securitisation moves into new paradigm


As a result, confidence in ratings was shaken and the agencies have come under fire from investors and regulators.

Hundreds of residential mortgage-backed securities (RMBSs) and collateralised debt obligations (CDOs) of asset-backed securities (ABSs) – including some AAA-rated tranches – have been downgraded. The actions severely shook confidence in the reliability of credit ratings and have caused regulators to take a close look at the their role.

However, the credit-rating agencies are not taki