There is a debate on conflicts of interest that exist between certain bond ratings agencies, such as Moody’s and Standard & Poor’s, and the corporation’s bonds that they rate. There is also a debate on conflicts of interest that exist between financial firms, such as Goldman Sachs and J.P. Morgan, and the corporation’s equity that rate. Discuss strategies that would reduce these conflicts of interest.
Read “Related to bond rating conflicts of interest” and “Related to equity rating conflicts of interest” on the Module 4: Lecture Materials & Resources page. LINKS BELOW…
https://www.theguardian.com/business/2011/aug/22/ratings-agencies-conflict-of-interest
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.363.3392&rep=rep1&type=pdf
https://www.cepr.net/there-is-a-simple-solution-to-the-conflict-of-interest-of-bond-rating-agencies/
https://www.economist.com/finance-and-economics/2016/12/01/sell-side-share-analysis-is-wrong
https://www.investopedia.com/articles/financialcareers/11/sell-side-buy-side-analysts.asp
