CMBS update - looks like Moody's analysts get to hit the Hampons early today
Moody's Investors Service, one of the major rating agencies, says it is being passed over on 75% of CMBS rating assignments because of tighter credit standards than its competitors.
This is just like me choosing a lender. One lender makes me do a, b, c, d, e, f, g, h and i and its competition only makes me do a, b and c. All else being equal, who do you think I choose? You shop agencies just like you do lenders.
Of course, the people who might get hurt are those expecting to clip the coupons. For a great analysis of the situation, check out Mike Shedlock's thoughts on the situation. Here's a stellar sample of his thoughts:
"So this talk of a "tough stance" by Moody's is a total crock. OK so maybe Moody's is losing out on a few ratings because of shopping around. So what? Not playing the ratings game scam is easy to do now with all of these blowups we are seeing. It's much tougher to do what needs to really be done, and that is to downgrade much more debt tha[n] it has. Moody's is obviously taking the easy way out on that score. And the fact that so much more debt is deserving of these downgrades shows you just how badly Moody's failed to do the right thing in the first place."
Bingo.
This is just like me choosing a lender. One lender makes me do a, b, c, d, e, f, g, h and i and its competition only makes me do a, b and c. All else being equal, who do you think I choose? You shop agencies just like you do lenders.
Of course, the people who might get hurt are those expecting to clip the coupons. For a great analysis of the situation, check out Mike Shedlock's thoughts on the situation. Here's a stellar sample of his thoughts:
"So this talk of a "tough stance" by Moody's is a total crock. OK so maybe Moody's is losing out on a few ratings because of shopping around. So what? Not playing the ratings game scam is easy to do now with all of these blowups we are seeing. It's much tougher to do what needs to really be done, and that is to downgrade much more debt tha[n] it has. Moody's is obviously taking the easy way out on that score. And the fact that so much more debt is deserving of these downgrades shows you just how badly Moody's failed to do the right thing in the first place."
Bingo.
Comments
Post a Comment