Think of any conflict of interest concerning rating agencies

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Reference no: EM131348590

Through this discussion we will reflect back and discuss agency costs. Companies pay rating agencies such as Moody’s and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated; doing so is strictly voluntary. Prior to participating in the discussion be certain you have:

Then share your perspective on the following:

Why do you think they do it?

Why are junk bonds often not rated?

Can you think of any conflict of interest concerning rating agencies?

Reference no: EM131348590

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