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Rating agencies braced for Calpers lawsuit

The rating agencies’ traditional First Amendment defence will be tested to the full when the largest public sector pension fund in the US brings a billion-dollars-plus claim for SIV losses.

The credit rating agencies have been fighting for their reputation since the implosion of the structured finance market two years ago. But the ratings industry faces potentially an even bigger challenge on

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The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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