4 ms·
well if they paid more, it could take out any profitability from a product where real returns after fees are already very low
by xchaotic 7y ago
well if they paid more, it could take out any profitability from a product where real returns after fees are already very low
- cm2187 7y agoAgree. Which is why the issuer is currently paying for it. But with the obvious potential conflict of interest. Plus these are securities, and all market participants should have access to the same public information. It is a problem to have half the investors in the dark about the transaction if they couldn't pay for a private rating (which in turn would negatively affect pricing).