A matter of trust

CDO Ratings

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Rating agencies have taken a thrashing since July last year, when the first of the residential mortgage-backed security (RMBS) and collateralised debt obligation (CDO) tranches with exposure to US subprime mortgage loans were downgraded. Since then, the agencies have come under heavy fire from investors over the accuracy of their ratings and for not reacting fast enough to evidence of a rise in subprime delinquencies as early as 2006. The saga has also reawakened concern about potential conflict

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