On Rating the Raters: Statistics in the Rating Industry

IndividualsTopicsratingsFinancerating industry and enterprises have never been as indebted in the history of mankind as they are today. Net indebtedness is of course always zero, as one party’s obligations are always another party’s assets. Nevertheless, the desire to secure repayment and to know the risk of default were probably never greater than they are today. This has created a huge market for suppliers of default predictions, in conjunction with a need to judge their forecasting capabilities.