{"id":1563,"date":"2007-12-06T16:12:25","date_gmt":"2007-12-06T20:12:25","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1563"},"modified":"2007-12-06T16:12:25","modified_gmt":"2007-12-06T20:12:25","slug":"bank-of-canada-discusses-credit-rating-agencies","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1563","title":{"rendered":"Bank of Canada Discusses Credit Rating Agencies"},"content":{"rendered":"<p>The Bank of Canada has released the <a href=\"http:\/\/www.bankofcanada.ca\/en\/fsr\/2007\/fsr_1207.pdf\">December 2007 Financial System Review<\/a> which includes a review of the Credit Rating Agency issue by Mark Zelmer, the <a href=\"http:\/\/www.bankofcanada.ca\/en\/pdf\/officersoct07.pdf\">Director of the Financial Risk Office<\/a>.<\/p>\n<p>Frankly, it&#8217;s a bit wishy-washy, but does summarize the various issues in a well-structured manner. Mr. Zelmer concludes:<\/p>\n<blockquote>\n<p>In the end though, investors need to accept responsibility for managing credit risk in their portfolios. While complex instruments such as structured products enhance the benefits to be gained from relying on credit ratings, investors should not lose sight of the fact that one can delegate tasks but not accountability. Suggestions such as rating structured products on a different rating scale could be helpful, in that this may encourage investors to think twice before investing in such complex instruments. Nevertheless, investors still need to understand the products they invest in, so that they can critically review the credit opinions provided by the rating agencies.<\/p>\n<\/blockquote>\n<p><!--053eb76e56d8f98b65104d1d090f548f--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of Canada has released the December 2007 Financial System Review which includes a review of the Credit Rating Agency issue by Mark Zelmer, the Director of the Financial Risk Office. Frankly, it&#8217;s a &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,24],"tags":[],"class_list":["post-1563","post","type-post","status-publish","format-standard","hentry","category-interesting-external-papers","category-regulation"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1563"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1563\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}