Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The models that the credit rating firms (e.g., Moody's, S&P, and Fitch) used to evaluate the risk of the various MBS debt securities and thereby
The models that the credit rating firms (e.g., Moody's, S&P, and Fitch) used to evaluate the risk of the various MBS debt securities and thereby assigned a credit rating (e.g. AAA, AA-BB, or unrated) were
right on target, but only in the aggregate.
super models, and while as a group they were not so good at evaluating credit risk, they made up for it with their good looks and impeccable fashion sense.
poorly made models.
unimportant, since they all turned out to be backed by the full faith and credit of the U.S. Treasury.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started