CPDO ratings scorned at credit risk summit

The idea of rating CPDOs and other structured products has caused rancour, as their expected loss effectively relies on the success of a trading strategy and has little to do with creditworthiness. Moreover, the strategy they rely upon has recently suffered due to higher-than-expected market volatility. Jon Gregory, global head of credit derivatives quantitative analytics at Barclays Capital, said that competition for business among agencies had propelled them into rating the products. "The