How do you rate the ratings agencies?

ref:- "Tail Risk" by Kate Allen, The Financial Times, Companies and Markets This short and not entirely complimentary piece by Kate Allen got us thinking more widely about credit rating agencies and the role that they play. There are numerous agencies but essentially this "market" is controlled by the big three: Moody's, S & P Global and Fitch, who between them are responsible for assessing the credit-worthiness of 95% of the global debt. The issuers of this debt may range from comparatively small companies right up to the largest of sovereign nations, and the ratings that they are given go a long way to deciding the price of their debt and therefore the cost of their borrowing. That's why t

"Times they are a-changin'", as someone once said ..... and maybe the Fed will have to

ref :- "Tepid inflation sparks Federal Reserve rethink" , The Financial Times , International Section In life, and not just in economics, it's reassuring to be able to rely on some basic principles which one knows to be true .... or at least, one thinks one knows to be true. It can be pretty upsetting therefore when one is forced to realise that those accepted truths no longer hold water, and those of a melodramatic bent might be vulnerable to dark thoughts about the world moving on and leaving them behind. Relax .... things have always evolved from one reality to another , and our understanding has always had to evolve with them. It's just that changing fundamental beliefs doesn't come easy

Well, we're back... and still banging on about a favourite theme: "LIQUIDITY... AND THE LAC

ref:- "Liquidity mirage makes it hard for investors to know the true price of anything" by Bilal Hafeez, Markets Insight, The Financial Times Ah yes... LIQUIDITY. The term can have different interpretations, but when it comes to markets Mr Hafeez defines it as "the ability to buy or sell a security"... and that's as good a definition as any, we reckon. It's a hugely important factor for investors, and the fact that it can be extremely difficult to quantify exactly the effects of a lack of liquidity diminishes its significance, not one bit... in fact, it's unpredictability makes it all the more dangerous. In a slightly stretched reference to Oscar Wilde's character Lord Dartington's observati

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