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S&P / Moodys are rating companies for debt, not equity. The investment proposition for someone lending a company money as a secured creditor is very different t
by omh 16y ago
S&P / Moodys are rating companies for debt, not equity. The investment proposition for someone lending a company money as a secured creditor is very different to someone investing equity, and I'm not sure that it directly results in investors getting any profits.
- alecco 16y agoYes. I'm wrong. But the ratings of the debt of corporations are highly correlated with their valuations. Edit: To be clear, I was talking about dumb money. Usually indexed funds and such. Enron was part of S&P 500 for years.