Auction Market Preferred Shares
By John Schroy, on March 30th, 2009 | 
Failures of commercial rating services to do an adequate job have been widely recognized, in the wake of the Crash of 2008. Much of the criticism, however, has been directed to the conflicts of interests that are a characteristic of these services.
This article discusses other weaknesses of commercial publishers of investment information, such as the industrial nature of their operations and their marketing focus on traders rather than long-term investors. The case of Auction Market Preferred Shares, which failed in 2008, is covered in detail.
Post Modern Security Analysis
By John Schroy, on March 20th, 2009 | 
The Crash of 2008 revealed serious flaws in the rating agency system. The market had lost confidence in the major agencies because of the practice of selling ratings. Also, ratings had become a condition of default and agencies, to look good, rapidly downgraded issues just prior to default.
Reform of this system is not simple, requiring an entirely new approach consistent with the complexity of today’s market. Collaborative research with new Internet technology is a possible solution.
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