Centre for European Policy Studies: Researcher – Financial Markets and Institutions Unit euractiv.sk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from euractiv.sk Daily Mail and Mail on Sunday newspapers.
Papers by Ixart Miquel-Flores ecb.europa.eu - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ecb.europa.eu Daily Mail and Mail on Sunday newspapers.
The COVID-19 shock infected the euro area’s financial markets, causing races for liquidity and sell-offs of even safe assets, including sovereign bonds. The European Central Bank stepped in decisively to avert further damage by implementing sound monetary policies, demonstrating the importance of being prepared before a new crisis unfolds.
Credit ratings, decried for having failed miserably to identify the risks embedded in the structured products that led to the subprime crisis, remain at the heart of the financial game. For, despite its critics, it offers a synthetic view of an issuer's creditworthiness to intermediaries who don't have the time or ability to study a dossier in depth. This succinct presentation provides a minimum approach to the question, and helps us to understand what lies behind "AAA" and other "Junk Bonds". | 11:47am