Sovereign Credit Ratings And Central Banks PDF Download
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| Author | : Cristina Bodea |
| Publisher | : |
| Total Pages | : 45 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download Sovereign Credit Ratings and Central Banks Book in PDF, ePub and Kindle
Credit rating agencies have been an important determinant of countries' cost of capital in the last couple of decades. This paper studies the effect of the governance of modern central banks on the ratings assigned by the credit rating agencies Standard and Poor's and Moody's. Until recently, the rating process was not public. Even still, the factors or precise methodologies used by the agencies remain uncertain. We argue that the independence and transparency of central banks are important to the overall risk of repayment. This is because both features are signals of high quality institutional governance, which credit rating agencies link to willingness and ability to repay. We suggest that both independence and transparency have the potential to improve economic and political stability, and, therefore improve countries' credit rating. On the other hand, we argue that open conflict between the central bank and the government, reflected in loss of employment for top central bank officials, should have the opposite effect.
| Author | : Mr.Giovanni Dell'Ariccia |
| Publisher | : International Monetary Fund |
| Total Pages | : 54 |
| Release | : 2018-09-07 |
| Genre | : Business & Economics |
| ISBN | : 1484359623 |
Download Managing the Sovereign-Bank Nexus Book in PDF, ePub and Kindle
This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this nexus? What do we know about it? To what extent is it a source of concern? What is the role of policy intervention? The paper concludes with a review of recent policy proposals.
| Author | : Norbert Gaillard |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 200 |
| Release | : 2011-09-21 |
| Genre | : Business & Economics |
| ISBN | : 1461405238 |
Download A Century of Sovereign Ratings Book in PDF, ePub and Kindle
The financial difficulties experienced by Greece since 2009 serve as a reminder that countries (i.e., sovereigns) may default on their debt. Many observers considered the financial turmoil was behind us because major advanced countries had adopted stimulus packages to prevent banks from going bankrupt. However, there are rising doubts about the creditworthiness of several advanced countries that participated in the bailouts. In this uncertain context, it is particularly crucial to be knowledgeable about sovereign ratings. This book provides the necessary broad overview, which will be of interest to both economists and investors alike. Chapter 1 presents the main issues that are addressed in this book. Chapters 2, 3, and 4 provide the key notions to understand sovereign ratings. Chapter 2 presents an overview of sovereign rating activity since the first such ratings were assigned in 1918. Chapter 3 analyzes the meaning of sovereign ratings and the significance of rating scales; it also describes the refinement of credit rating policies and tools. Chapter 4 focuses on the sovereign rating process. Chapters 5 and 6 open the black box of sovereign ratings. Chapter 5 compares sovereign rating methodologies in the interwar years with those in the modern era. After examining how rating agencies have amended their methodologies since the 1990s, Chapter 6 scrutinizes rating disagreements between credit rating agencies (CRAs). Chapters 7 and 8 measure the performances of sovereign ratings by computing default rates and accuracy ratios: Chapter 7 looks at the interwar years and Chapter 8 at the modern era. The two chapters assess which CRA assigns the most accurate ratings during the respective periods. Chapters 9 and 10 compare the perception of sovereign risk by the CRAs and market participants. Chapter 9 focuses on the relation between JP Morgan Emerging Markets Bond Index Global spreads and emerging countries’ sovereign ratings for the period 1993–2007. Chapter 10 compares the eurozone members’ sovereign ratings with Credit Default Swap-Implied Ratings (CDS-IRs) during the Greek debt crisis of November 2009–May 2010.
| Author | : Tim Willems |
| Publisher | : International Monetary Fund |
| Total Pages | : 28 |
| Release | : 2022-01-28 |
| Genre | : Business & Economics |
| ISBN | : |
Download Sovereign Debt Sustainability and Central Bank Credibility Book in PDF, ePub and Kindle
This article surveys the literature on sovereign debt sustainability from its origins in the mid-1980s to the present, focusing on four debates. First, the shift from an “accounting based” view of debt sustainability, evaluated using government borrowing rates, to a “model based” view which uses stochastic discount rates. Second, empirical tests focusing on the relationship between primary balances to debt. Third, debt sustainability in the presence of rollover risk. And fourth, whether government borrowing costs below rates of growth (“r
| Author | : Ashok Vir Bhatia |
| Publisher | : International Monetary Fund |
| Total Pages | : 68 |
| Release | : 2002-10 |
| Genre | : Business & Economics |
| ISBN | : |
Download Sovereign Credit Ratings Methodology Book in PDF, ePub and Kindle
This paper describes and evaluates the sovereign credit ratings methodologies of Standard & Poor's, Moody's Investors Service, and Fitch Ratings. A simple definition of ratings failure-based on ratings stability-is proposed and tested, pointing to falling failure rates, consistent upside bias, and strong interagency correlation. Possible causes of ratings failure are separated into informational, analytical, revenue bias, and other incentive problems, each of which is discussed. The paper seeks to highlight methodological developments after the Asian crisis, particularly with regard to the estimation of contingent liabilities and the assessment of international reserves adequacy.
| Author | : Carmen M. Reinhart |
| Publisher | : Princeton University Press |
| Total Pages | : 512 |
| Release | : 2009-09-11 |
| Genre | : Business & Economics |
| ISBN | : 1400831725 |
Download This Time Is Different Book in PDF, ePub and Kindle
The acclaimed New York Times bestselling history of financial crises Throughout history, rich and poor countries alike have been lending, borrowing, crashing, and recovering their way through an extraordinary range of financial crises. Each time, the experts have chimed, “this time is different”—claiming that the old rules of valuation no longer apply and that the new situation bears little similarity to past disasters. With this breakthrough study, leading economists Carmen Reinhart and Kenneth Rogoff definitively prove them wrong. Covering sixty-six countries across five continents and eight centuries, This Time Is Different presents a comprehensive look at the varieties of financial crises—including government defaults, banking panics, and inflationary spikes—from medieval currency debasements to the subprime mortgage catastrophe. Reinhart and Rogoff provocatively argue that financial combustions are universal rites of passage for emerging and established market nations. A remarkable history of financial folly, This Time Is Different will influence financial and economic thinking and policy for decades to come.
| Author | : Bertrand Candelon |
| Publisher | : International Monetary Fund |
| Total Pages | : 30 |
| Release | : 2011-03-01 |
| Genre | : Business & Economics |
| ISBN | : 1455225061 |
Download Sovereign Rating News and Financial Markets Spillovers Book in PDF, ePub and Kindle
This paper examines the spillover effects of sovereign rating news on European financial markets during the period 2007-2010. Our main finding is that sovereign rating downgrades have statistically and economically significant spillover effects both across countries and financial markets. The sign and magnitude of the spillover effects depend both on the type of announcements, the source country experiencing the downgrade and the rating agency from which the announcements originates. However, we also find evidence that downgrades to near speculative grade ratings for relatively large economies such as Greece have a systematic spillover effects across Euro zone countries. Rating-based triggers used in banking regulation, CDS contracts, and investment mandates may help explain these results.
| Author | : Nicola Gennaioli |
| Publisher | : International Monetary Fund |
| Total Pages | : 53 |
| Release | : 2014-07-08 |
| Genre | : Business & Economics |
| ISBN | : 1498391990 |
Download Banks, Government Bonds, and Default Book in PDF, ePub and Kindle
We analyze holdings of public bonds by over 20,000 banks in 191 countries, and the role of these bonds in 20 sovereign defaults over 1998-2012. Banks hold many public bonds (on average 9% of their assets), particularly in less financially-developed countries. During sovereign defaults, banks increase their exposure to public bonds, especially large banks and when expected bond returns are high. At the bank level, bondholdings correlate negatively with subsequent lending during sovereign defaults. This correlation is mostly due to bonds acquired in pre-default years. These findings shed light on alternative theories of the sovereign default-banking crisis nexus.
| Author | : Zsófia Barta |
| Publisher | : Oxford University Press |
| Total Pages | : 225 |
| Release | : 2023-04-03 |
| Genre | : Political Science |
| ISBN | : 0198878192 |
Download Rating Politics Book in PDF, ePub and Kindle
How do countries' political and policy choices affect the credit ratings they receive? Sovereign ratings influence countries' cost of funding, and observers have long worried that rating agencies - these unelected, unappointed, unaccountable, for-profit organizations - can interfere with democratic sovereignty if they assign lower ratings to certain political and policy choices. The questions of whether, how, and why ratings react to policy and politics, however, remain unexplored. Rating Politics opens the black box of sovereign ratings to uncover the logic that drives rating responses to political and policy factors. Relying on statistical analysis of rating scores, interviews with sovereign rating analysts, and a close reading of the official communications of rating agencies about their decisions, Zsófia Barta and Alison Johnston show that ratings penalize center-left governments and many (though not all) policies associated with the center-left agenda. The motivation for such penalties is not rooted in assumptions about how those political and policy features affect growth and debt servicing capacity. Instead, ratings are lower in the presence of those features because they are expected to make a country more vulnerable to market panics whenever the economy is hit by unforeseen shocks, as they signal insufficient willingness and/or ability to engage in determined austerity for the sake of reassuring markets. Since market panics and the resulting "sudden stops" of funding lead to humiliating collapses of ratings, rating agencies attempt to insure themselves against "rating failures" by pre-emptively assigning lower ratings to countries with the "wrong" political and policy mix.
| Author | : B. Paudyn |
| Publisher | : Springer |
| Total Pages | : 257 |
| Release | : 2014-06-19 |
| Genre | : Political Science |
| ISBN | : 1137302771 |
Download Credit Ratings and Sovereign Debt Book in PDF, ePub and Kindle
Bartholomew Paudyn investigates how governments across the globe struggle to constitute the authoritative knowledge underpinning the political economy of creditworthiness and what the (neoliberal) 'fiscal normality' means for democratic governance.
