#Latest news with #lendingfirmsWall Street Journal18-05-2025BusinessWall Street JournalPrivate-Credit Ratings Under Scrutiny: Conflicting Interests Fuel Investor ConcernsRatings that grade private-credit products and are used by investors to categorize debt issued by lending firms are increasingly being called into question by industry decision makers. Credit firms that bundle packages of loans to back securities like collateralized loan obligations, or CLOs, are often able to choose the ratings provider for such issues. Critics say this can lead to conflicts of interest, as the issuer pays fees to the ratings provider while the resulting grades can significantly affect the marketability of the rated securities.
Wall Street Journal18-05-2025BusinessWall Street JournalPrivate-Credit Ratings Under Scrutiny: Conflicting Interests Fuel Investor ConcernsRatings that grade private-credit products and are used by investors to categorize debt issued by lending firms are increasingly being called into question by industry decision makers. Credit firms that bundle packages of loans to back securities like collateralized loan obligations, or CLOs, are often able to choose the ratings provider for such issues. Critics say this can lead to conflicts of interest, as the issuer pays fees to the ratings provider while the resulting grades can significantly affect the marketability of the rated securities.
18-05-2025
