Credit Rating Agencies, Exchanges, and Clearing and Settlement
Credit Rating Agencies
Credit rating agencies play a very important role in the business of investment banking by assigning credit ratings to debt issuers and their debt instruments. Debt instruments include bonds, convertible bonds, and loans. In addition, credit rating agencies assign ratings to structured finance securities that are backed by various types of collateral. Structured finance includes asset-backed securities, residential and commercial mortgage-backed securities, and collateralized debt obligations. Investment banks work closely with credit rating agencies when developing structured finance products in order to secure targeted ratings for these securities. See
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