Rating equity
The rating agencies have published guidelines for rating EDS portfolios, and already the first rated deals have emerged. Could this be the start of a wider take-up of these products by Japanese investors? Nick Sawyer reports
Equity default swaps (EDS) are making their way out of the shadows and into the glare of the public domain. The two major ratings agencies have published – within weeks of each other – their methodologies for rating EDS portfolios. The first rated deals emerged almost immediately afterwards, one in Europe and one in Japan, and more dealers are looking to pounce with rated deals of their own.
The move to assign ratings to EDS portfolios has been greeted as a major step in the development of the
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