Untangling Bond Market Credit Ratings: An International Perspective

<p> <p> The daily transaction volume in the Thai bond market currently stands at approximately 65 billion baht, which is a significant rise from just 1 million baht back in 1994. </p> <p> Bonds act as essential financial tools for both governmental bodies and corporations. Given the substantial amounts involved, having robust investment analysis methods becomes critical, with one of these being Credit Ratings provided by Credit Rating Agencies (CRAs). Businesses aiming to generate capital via bonds require evaluations from CRAs regarding their creditworthiness. The resulting ratings affect bond returns and significantly help in drawing potential investors. </p> <p> Nevertheless, recent market events have indicated that credit ratings may not encompass the complete range of potential risks. Instances of "fallen angels," referring to situations where bonds experience significant downgrades, have highlighted how alterations in ratings can substantially affect both specific financial instruments and overall market trust. </p> <p> This situation underscores the crucial function of credit rating agencies (CRAs), necessitating an extensive assessment of commercial and fiscal elements, alongside ongoing surveillance of economic trends. Moreover, these entities require clear processes, precise information, and robust handling of possible ethical dilemmas. It is equally vital for them to guarantee that investors can easily obtain detailed details about ratings. </p> <p> Currently, Thailand has two credit rating firms: TRIS Ratings and Fitch Ratings. These entities function under the oversight of the Securities and Exchange Commission (SEC), which employs a whitelist approval process. In order to keep their authorized standing, Credit Rating Agencies (CRAs) are required to adhere to global standards, submit periodic updates, and permit examinations from the SEC. Non-compliance with these regulations may result in license cancellation. </p> <p> Nevertheless, the present regulatory structure encompasses two major drawbacks: </p> <p> Initially, it places excessive emphasis on final regulatory actions. The SEC’s primary enforcement mechanism is license revocation, which might be overly harsh for slight infractions and restricts possibilities for proactive interventions. </p> <p> Secondly, the rating focuses on organizational measures. However, it falls short in evaluating measures related to conflict of interest prevention and enhancing transparency in other aspects. </p> <p> Although global regulators have introduced several measures to improve credit ratings, many of these may not be suitable for Thailand’s specific market conditions and regulatory framework. Despite these constraints, enhancements are still possible. Consequently, we suggest adopting two initial actions aimed at bolstering market trust: </p> <p> To enhance rating independence, the SEC ought to implement analyst rotation rules aimed at diminishing prolonged connections between credit rating agencies (CRAs) and entities issuing ratings. Although the EU requires mandatory rotations every four years, Thailand’s small pool of only two CRAs indicates that focusing on rotating individual analysts rather than entire firms might be more effective. This approach would still maintain high standards and consistency in rating services through appropriate measures designed to protect their reliability. </p> <p> Moreover, the SEC ought to mandate that CRAs reveal details in these key areas: substantial financial connections between CRAs and issuers that could sway judgment (like stock holdings or income links), along with insights aiding investors in grasping the constraints of the rating procedure. This includes disclosing their analytical presumptions, the thoroughness and caliber of the data obtained from issuers, and potential risks that might impact forthcoming credit assessments. </p> <p> Although these suggestions can serve as initial measures, they should be complemented by more extensive reforms in several crucial sectors to enhance the caliber of credit ratings in Thailand effectively: </p> <p> Initially, boost competitiveness within the Credit Rating Agency (CRA) sector. The presence of just two providers restricts issuers' options and hampers competitive pressure on service quality. Additionally, this situation poses significant regulatory hurdles, as watchdogs have to carefully navigate stringent oversight without causing widespread disruptions; for instance, withdrawing endorsement from even one CRA might substantially disrupt the overall bond market dynamics. </p> <p> Secondly, enhance safeguards against fraudulent activities. The reliability of credit assessments hinges significantly on the precision of data supplied by issuers. Instances like the recent default of Stark Corporation due to accounting deceit highlight how ratings may mislead when incorrect details are intentionally provided. It is essential for the SEC to focus on establishing robust whistleblower protections aimed at identifying impropriety promptly and minimizing chances for inaccurate information from being incorporated into credit evaluations. </p> <p> Thirdly, reduce dependence on credit ratings within the capital market structure. Although these ratings serve as crucial instruments for gauging risks, they ought not to stand alone as the definitive measure. In Thailand’s current financial landscape, credit ratings play an overly significant part across various aspects of regulation, which introduces systemic weaknesses and leads participants to overlook alternative methods of assessing risk. It would be beneficial to reassess the function of credit ratings concurrently with fostering and encouraging a variety of risk evaluation techniques. </p> <p> Improving the quality of credit ratings and guaranteeing their proper usage is essential for advancing Thailand’s bond market. Although enhancing the regulatory framework for Credit Rating Agencies can bolster both autonomy and openness in evaluations, concurrent changes in competition policies, fraud prevention measures, and reliance on credit ratings will aid in establishing enduring trust within the marketplace. </p> </p> Provided by SyndiGate Media Inc. Syndigate.info ).

Untangling Bond Market Credit Ratings: An International Perspective

The daily transaction volume in the Thai bond market currently stands at approximately 65 billion baht, which is a significant rise fro...

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MTN MobileMoney LTD Guarantees a Secure and Safe Money Platform

<div class="entry-content"> <p> By Stanley Senya </p> <p> Accra, May 5, GNA – MobileMoney LTD (MoMo), a subsidiary of MTN Ghana, has assured customers that its mobile money platform remains secure and has not been compromised in any way. </p> <p> This comes after false reports spread across social media platforms, incorrectly stating that MTN’s systems were compromised and encouraging customers to transfer out their money. </p> <p> MobileMoney LTD strongly refutes these claims, calling them entirely false and, in some cases, deliberately deceptive. </p> <p> “We want to reassure our customers that the recent cybersecurity incident has not affected the operation or security of our mobile money services,” the company said in a statement. </p> <p> No customer funds have been compromised, and the MoMo platform remains operational in a safe and secure manner. </p> <p> MobileMoney LTD highlighted that they employed strong, industry-standard security measures to safeguard user information and finances. </p> <p> These features encompass complete encryption, two-step verification, along with continuous system surveillance around the clock to thwart and identify illicit actions. </p> <p> The firm similarly collaborates intensively with regulatory bodies, cyber security experts, and partnering organizations to maintain the utmost levels of protection. </p> <p> The firm additionally encouraged patrons to depend solely on official MTN Ghana and MobileMoney LTD platforms for precise details. </p> <p> Customers are also reminded not to share sensitive details like passwords, PINs, or OTPs via phone calls, texts, or emails. </p> <p> GNA </p> <p> CA/ </p> </div> Provided by SyndiGate Media Inc. Syndigate.info ).

MTN MobileMoney LTD Guarantees a Secure and Safe Money Platform

By Stanley Senya Accra, May 5, GNA – MobileMoney LTD (MoMo), a subsidiary of MTN Ghana, has assured customers that its mobile mon...

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뉴욕 증시 들썩! 파월 발언과 점도표가 예고하는 비트코인 붐폭발 ("금리인 하 2번")

<p> <strong> SEC의 리플 XRP 소송이 공식적으로 취소되면서, 파월 연준 의장의 발언으로 인해 위험 선호 심리가 회복되었다... 상승하며 거래를 종료했습니다. 테슬라와 엔비디아, 그리고 아이온큐 리게티도 함께 상승하였습니다. </strong> </p> <p> <img data-document-id="cms/api/amp/image/AA1BglYX" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1BglYX.jpg"/> ニュ욕 증권시장에서 비트코인이 열광적인 반응을 보였습니다. “파월의 진술과 점도표에 의한 금리 인하 예상 두 번” 때문이죠… SEC가 리플의 XRP 소송을 공식적으로 취소했습니다. </p> <p> 뉴욕 증권시장에서 비트코인에 큰 박수와 함께 기쁨의 함성이 들려왔습니다. 파월의 안정적인 발언과 연방기금 금리 인하 두 차례 예상이 시장을 활성화했죠. 또한 미국 증권거래위원회(SEC)가 리플(XRP) 관련 소송을 공식적으로 취소하면서 암호화폐 전체가 상승세를 보이고 있습니다. 특히 리플은 크게 치솟았으며, 테슬라, 엔비디아, 아이オン큐 그리고 리게티 등의 주요 회사들의 주가는 더욱 가파르게 오르며 호황기를 누리고 있습니다. </p> <p> 20일 뉴욕증시에 따르면 제롬 파월 미 연방준비제도(Fed·연준) 의장은 "인플레이션이 우리의 조치 없이 빠르게 사라질 것으로 예상되는 일시적인 현상이라면 때론 그런 인플레이션을 간과하는 게 적절할 수 있다"라고 밝혔다. 파월 의장은 이날 연방공개시장위원회(FOMC)가 기준금리를 4.25∼4.50%로 동결한 뒤 연 기자회견에서 이처럼 말하고 "관세 인플레이션의 경우에도 그럴 수 있다"라고 말했다. 파월 의장은 이어 "이는 관세 인플레이션이 상당히 빠르게 지나갈 지에 달려 있다"며 " 장기 인플레이션 기대가 잘 고정돼 있는지에도 중요하게 좌우될 것"이라고 강조했다. </p> <p> 파월 의장의 이러한 언급은 도날드 트럼프 미국 행정부의 관세 정책 영향이 신속히 사라진다면, 이를 통한 물가 상승도 일시적으로 끝날 수 있다는 견해를 나타낸 것이다. </p> <p> 뉴욕 증권시장은 연방준비제도(Fed·연준)가 발표하는 3월 통화정책회의 성과를 분석하면서 모두 올라가는 것으로 종료되었다. </p> <p> 연준은 이번 회의에서 기대했던 대로 '금리 동결'이라는 결론을 냈습니다만, 시장에서는 올해 안으로 두 번째 금리를 낮출 것으로 본다는 견해가 계속되면서 환영하는 분위기가 형성되었습니다. 제롬 파월 연준 의장도 최근 물가 상승 압력과 경제 성장 둔화 가능성에 대한 걱정을 크게 하지 않는다고 밝힌 것이 투자자들의 마음을 진정시켰습니다. 그의 말 이후에는 위험을 감수하고 주식 등을 사는 사람들의 마음이 살아나며 값싼 가격에 구매를 하는 움직임에도 활기를 불어넣었습니다. </p> <p> 뉴욕증권거래소(NYSE)에서 거래가 종료될 때 우량 주식 지표로 알려진 다우존스 30 산업 평균 지수는 이전 세션에 비해 382.31 포인트(0.92%) 상승하여 41,963.62를 기록했습니다. 큰 규모의 회사들을 추적하는 S&P 500 지수는 같은 시기 전일대비 61.25포인트(1.09%) 증가한 5,675.91으로 움직였으며, 기술 중심의 나스닥 통합 지수 역시 247.60포인트(1.41%) 상승하며 17,751.71까지 올랐습니다. </p> <p> 김대호 연구소장 tiger8280@g-enews.com </p>

뉴욕 증시 들썩! 파월 발언과 점도표가 예고하는 비트코인 붐폭발 ("금리인 하 2번")

SEC의 리플 XRP 소송이 공식적으로 취소되면서, 파월 연준 의장의 발언으로 인해 위험 선호 심리가 회복되었다... 상승하며 거래를 종료했습니다. 테슬라와 엔비디아, 그리고 아이온큐 리게티도 함께 상승하였습니다. ニュ욕 증권시장...

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