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The US Securities and Exchange Commission (SEC) is investigating into possible insider trading by Standard & Poor's (S&P) employees who knew about their decision to cut US credit rating. This inquiry is part of SEC’s move to become more proactive in its responsibilities.
With the US credit rating cut, what it means for investors is that “…credit ratings do matter. Investors use them to compare the risks of various issuers and securities, just as banks often use credit scores to assess the risk of an individual borrower. A rating is only one of many metrics investors use when analyzing bonds, but it is an important one,” said Schwab analyst.
With the US credit rating cut, what it means for investors is that “…credit ratings do matter. Investors use them to compare the risks of various issuers and securities, just as banks often use credit scores to assess the risk of an individual borrower. A rating is only one of many metrics investors use when analyzing bonds, but it is an important one,” said Schwab analyst.
:oIo:
