Research

Differential Properties in the Ratings of Certified vs. Non-Certified Bond Rating Agencies

By: William H Beaver/Stanford University, Catherine Shakespere & Mark T. Soliman/University Of Michigan |


Stanford University and University of Michigan studies

Direct excerpts and conclusions:

Credit ratings from Egan-Jones more accurately reflect information in the marketplace and are frequently up to 237 days ahead of actions taken by Moody’s and S&P.

The powerful market incentives resulting from the investor supported, independent business model of Egan-Jones Ratings Company produces more timely and accurate ratings with predictive value.

 

William H Beaver, Graduate School of Business, Stanford University, Stanford, CA 94305
Catherine Shakespere, Mark T. Soliman, University of Michigan, Ann Arbor, MI 48109

First version 2003, Second version, June 2006.

 

Differential Properties in the Ratings of Certified vs Non-Certified Bond Rating Agencies