You might think that you know what’s going on with the recent downgrades, but do you really know the truth behind these ratings that the credit rating agencies, who are supposed to be unbiased, are helping prop up a failing system through self-serving ratings? And most importantly, what happens to you when it all comes crashing down?

CHAPTERS:

0:00 Truth Behind the Ratings
1:19 What is Supposed to Happen With Credit Ratings
3:00 Parameters in Ratings
3:52 Downgrades
5:11 Why the Downgrades Happened
7:01 Explanation of Ratings
8:44 Takeaway From Downgrades
9:56 Protect Yourself

SOURCES:

https://www.cnbc.com/2019/11/05/sec-urged-to-end-the-issuer-pay-model-tied-to-the-financial-crisis.html

https://www.fitchratings.com/research/banks/us-banks-funding-credit-challenges-to-persist-in-2h23-11-08-2023

https://www.cnbc.com/2023/08/15/fitch-warns-it-may-be-forced-to-downgrade-dozens-of-banks.html

https://thehill.com/business/4164139-sp-downgrades-five-regional-banks-facing-tough-operating-conditions/

https://www.fitchratings.com/research/banks/us-banks-operating-environment-score-lowered-on-structural-challenges-27-06-2023#:~:text=Fitch%20Ratings%2DNew%20York%2D27,the%20normalization%20of%20monetary%20policy.

https://www.imf.org/external/pubs/ft/fandd/2012/03/gavras.htm

https://digitalcommons.law.umaryland.edu/cgi/viewcontent.cgi?article=2471&context=fac_pubs

https://www.treasurers.org/ACTmedia/ITCCMFcorpcreditguide.pdf

https://academic.oup.com/cmlj/article/17/3/334/6609964

https://workplace.schwab.com/content/what-happens-if-corporate-bond-is-downgraded

https://www.nbcnews.com/business/business-news/sp-downgrades-multiple-us-banks-growing-liquidity-worries-rcna101196

https://www.cnn.com/2023/03/10/investing/svb-bank/index.html

https://www.cnn.com/2023/08/21/business/sp-us-bank-downgrades/index.html