Credit Rating Over-Reliance in Asset Management - A Legal and Economic Analysis of Mutual Fund Prospectuses and Regulatory Law in Europe and The United States

The 2008 financial crisis brought the far-reaching influence of credit ratings on capital markets into focus and confirmed doubts about the quality of ratings published by rating agencies. In the context of regulatory efforts to limit the influence of ratings, Marius Müller addresses the question to what extent investment funds are obliged to sell bonds that no longer comply with investment guidelines following a rating downgrade. Results of a statistical analysis of 200 European and U.S. fund prospectuses are evaluated in the light of regulatory objectives. Subsequently, a structural proposal for the formulation of investment guidelines is developed, accounting for the protection of investor interests and market functioning.

Summary

The 2008 financial crisis brought the far-reaching influence of credit ratings on capital markets into focus and confirmed doubts about the quality of ratings published by rating agencies. In the context of regulatory efforts to limit the influence of ratings, Marius Müller addresses the question to what extent investment funds are obliged to sell bonds that no longer comply with investment guidelines following a rating downgrade. Results of a statistical analysis of 200 European and U.S. fund prospectuses are evaluated in the light of regulatory objectives. Subsequently, a structural proposal for the formulation of investment guidelines is developed, accounting for the protection of investor interests and market functioning.

Product details

• Authors: Marius Müller
• Publisher: Nomos
• Languages: English
• Product format: Paperback / Softback
• Released: 01.12.2023
• EAN: 9783756013357
• ISBN: 978-3-7560-1335-7
• No. of pages: 262
• Weight: 381 g
• Series: Studien zum Bank- und Börsenrecht; Studien zum Bank-, Börsen- und Kapitalmarktrecht
• Subjects: Social sciences, law, business > Law > Mercantile and commercial law; Europa, USA, Vereinigte Staaten von Amerika, USA, Europe, Bewertungen, EU, Europäische Union, NG-Rabatt, Ratingagenturen, Ratings, investmentfonds, Regulation, Asset Management, finanzkrise 2008, mutual funds, Wirtschaftsanalyse, economic analysis, Regulierungsrecht, Finanzenwesen und Finanzindustrie, Verwaltung von Privatvermögen, regulatory law, credit ratings, investment directive, investor interests, influence limits on ratings, Investitionsrichtlinie, Kreditbewertungen, Qualitätszweifel, sales of graded bonds, mutual fund prospectus, Marktfunktionierung, Investmentfondsprospekte, Kreditbewertungsüberrelianz, Anlegerinteressen, credit rating over-reliance, Einflussbegrenzung von Bewertungen, rating agencies, Verkauf von abgestuften Anleihen, quality doubts, market functioning