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The company is a member of the Hitachi Group, listed on the first section of the Tokyo Stock Exchange, and enjoys an A+ credit rating and stable outlook from Ratings & Investment Information Inc. MORE
nation's credit rating has the same tone. Ratings are great when there is misinformation or uncertain information, but that is not the case here. An "AA+" rating is defined by S&P as follows: "An obligation rated 'AA' differs from the highest-rated obligations only to a small degree. And all ratings agencies tell their constituents that their ratings are a guide, a compass, not a hard and fast rule. MORE
This pattern of abstracting further and further away from "real" things and "real" value has continued to the present day, giving us credit cards and collateralized debt obligations (not to mention casino chips). From Bernie Madoff to derivatives to the housing bubble to dubious AAA credit ratings, we continue to find new ways to encourage people to make financial leaps of faith. What happens when there is a mass loss of confidence in the financial system? MORE
Workplace inspections not only improve safety, they cause no discernible damage to employers' ability to stay in business and no reductions in sales or credit ratings, according to our research. The federal Occupational Safety and Health Administration (OSHA) is back in the news after the Government Accountability Office criticized the agency for taking too long to adopt new safety regulations. The GAO report says the delays compromise worker safety. MORE
If your credit rating is in bad shape, Now Loans shows you can still acquire funding this way despite the hurdle. Marketing is an integral element for any business. From recent startups to long established organizations, continual promotion is necessary for a number of reasons. It allows a brand to become visible to new potential customers, it keeps them in the consciousness of current customers, and it can bring instant awareness to new products or services. MORE
Although credit-card holders with low credit ratings default more often than the rest of the population, the interest and fees they pay make them far more profitable for banks than any other groups of credit-card customers, according to research reported in The New York Times. Even during the financial crisis, when banks were hemorrhaging money on subprime mortgages, subprime credit cards were a major source of profits. MORE
This dysfunctional spinning led to countless disasters for buyers - who lost their homes and ruined their credit ratings. Q: In our company we value integrity, yet leaders - especially in marketing - are taught to "spin" to make products and services sound good to clients. When is "spinning" a message a good thing? When it is wrong? A: Every company that sells products or services "spins" these in a positive way to clients. This is not immoral, illegal, or unethical. MORE
The idea is that direct driving behavior over time will be more predictive than traditional proxies such as age, credit rating, or geography. For insurers, transforming these data into their most usable form may require the creation of new composite variables or scores from the existing data — something like a driving risk score that gives weight to telematics data, geography, and credit score. MORE
Get Yourself A Great Rating. When you’re trying to be careful with your funds, and save wherever you can; you might think that getting yourself a credit card might be a bad idea. However, it’s worth getting one so that you’ll have a credit rating or score for you and your business. Without a credit score, it can be difficult to gain investment or receive a loan, and you’ll probably need these at some point to invest further in your company. MORE
If you are able to find a partner with good credit, you improve your situation immediately and with them listed as co-owner of the business, your chances of getting a loan shoot up. It might be best to spend a few years restoring your credit rating and building a healthy savings account. MORE
While their job may have been setting or applying strict credit policies in the past, they may now start to wonder whether their traditional credit rating models are still effective. O NE OF the unfortunate side effects of living in an age of accelerating technology is having to deal with increased uncertainty. When faced with uncertainty, how should leaders react? Should they make a big bet, hedge their position, or just wait and see? MORE
We all know that many entrepreneurs have bad credit score. Moreover, some go through personal difficulties which affect their personal credit score at the same time. Do you need good credit to start a business? While having a bad credit should never be a hindrance for you to start your own business. Improving your credit score allows you to get loans or business line of credit that you can use to build your business. MORE
But the omnipresent rating game has one big catch: ranking up is incredibly hard, while ranking down is rapid and easy, like a free-fall. The reputation economy is based on the simplistic, but effective star ratings system. Anyone who’s ever rated their Uber driver or Airbnb host has actively participated. In 2012, Facebook applied for a patent that would use an algorithm to assess the credit ratings of friends, as a factor in one’s eligibility to get a mortgage. MORE
Financing a small business isn’t always easy, but there are plenty of solutions available, no matter how bad your credit rating is. Credit Card. When you don’t need a huge amount of capital, easily accessible funding options like credit cards are a useful tool. The great thing about credit cards is that they are flexible, so if you only need a short-term cash injection to buy supplies, a credit card may work for you. MORE
Turkey’s general credit rating is still higher than that of Brazil, Croatia, Portugal, Cyprus, and Serbia. The domestic saving rate , stagnant productivity , unemployment , and rapidly increasing labor costs all adversely affect growth. Three attackers armed with machine guns and strapped with explosives conducted a frontal assault on Istanbul’s Ataturk Airport on June 28. The brutal attack left dozens dead and hundreds injured. MORE
Money became a key element of these trust networks because it was cheaper to trust the money than the credit of a counterparty beyond your clan, village, or tribe. These hacks are things like badges, diplomas, dress codes, and, as it happens, credit ratings. The son of a Texan friend of mine decided earlier this year not to go to college, as someone like him would surely have done a few years ago. MORE
The nature of your accommodation is determined by your income, while your ability to get loans and credit opportunities is hampered by a poor credit rating. There are many things in life that rely heavily on your personal finances. In short, your personal finances, if healthy, can promote your overall wellbeing – and if poorly managed, your personal finances can cause you a great deal of discomfort. MORE
This in turn boosted development by allowing relatively poor farmers to reliably send and receive payments at affordable rates, fostering economic growth by lowering transaction costs. Educational records, business histories, health care information, and credit ratings could all be made usable the world over, helping those who want to trade or travel to prove their credentials. MORE
The tool’s analysis of inside sales calls at one company found that although reps had long been coached on a broad set of practices, four specific behaviors correlated most closely with sales close rates. It notifies a company if one of its competitors files a credit check on a customer, signaling potential defection. This type of software has consistently improved call response rates, close rates and average order value. MORE
Finding a balance between a trusted lender and high approval rates can be tricky and making the wrong choice can end up costing you considerably more. To be able to find lenders who offer high approval rates with low-interest rates, you’ll need to look at the market in general to compare the lenders. One of the problems you may find is that some lenders will claim they can offer high acceptance even with poor credit and charge a fee to go through an application. MORE
Plus, if you do need to borrow more at a later stage, your business’s credit won’t be affected. It can work out very well, and with enough research, you will be able to find a variety of different loans with varying interest rates and special deals. You may not be eligible for all of them, however, and applying for too many loans all at once can damage your credit rating. A Credit Card. MORE
Monitor your credit report so that you can actively make changes. The next thing you might want to think about is your current financial history regarding credit and your current score. You may want to look into your report on credit reference agencies so that you have a true idea of what is going on behind the scenes. This could be focusing on paying off debts or ensuring that all details on your credit file are correct. MORE
However, if your company can build business credit, you will find yourself gaining more opportunities to access cash. Whatever you do, don’t operate your business on your personal credit. Not only does it make your personal finances vulnerable, but business credit is a much more powerful tool professionally than personal credit. Make the financially fit decision Use these 5 quick tips to start building business credit today. MORE
It appears that Enron''s final fatal mistake was to try to support its stock price instead of living up to key contractual obligations required to maintain its credit rating. What caused Enron''s bankruptcy was, quite simply, the loss of its investment-grade credit rating. So, what caused Enron to lose its investment grade rating? Were the rating agencies aware of Enron''s oft-maligned financing structures? MORE
Most agencies have very high credit ratings, and companies can even get advanced payments from financial institutions on the future payments of government contracts (if necessary). The federal government spends over $4 trillion per year, and state & local agencies spend over $3 trillion. Government spending is the largest “industry” in the United States representing over 13% of U.S. Gross Domestic Product (GDP) — with manufacturing second at 12% of GDP. MORE
Blockchain technology can also take networked business models to a new level by supporting a whole host of breakthrough applications: native payment systems that run without banks, credit card companies, and other intermediaries will cut cost and time from transactions. Reputation systems built on social and economic capital and controlled by individuals, rather than by intermediaries like rating agencies and credit rating services, will change the dynamic between consumers and companies. MORE
Multi-billion dollar businesses such as Yelp, Zagat, TripAdvisor, Uber, eBay, Netflix, and Amazon crunch quantities of data including ratings of service providers and sellers in order to reduce customers’ risk. Currently, these good-bad-ugly ratings provide generic evaluations of sellers on standard scales. Big data holds out big promises for marketing. MORE
If you get a decent interest rate on your savings, as a low-interest loan may mean more money in your pocket overall. If your credit is good and you’re always getting loan offers, then you may decide to take out a standard bank loan to finance the car. You should calculate your monthly payments compared to rates offered by auto loan companies, and if possible, try to take out the loan over a shorter term to save on interest. MORE
In financial terms, and especially with regards to credit, governments are no different. As the CEO of a credit business, I’m in a unique position to take a look at how the US actually stacks up. Several agencies rank government creditworthiness, and according to all of them, the US is pretty darn good: Moody’s rates us at the top of the scale with an AAA rating. If the government were a business, how would its credit rating look? MORE
As one might expect, officials are using the error and S&P's earlier failure to properly rate bundled mortgage products to argue that the downgrade is incorrect. From falsified mortgage applications and bundles of toxic mortgages, to incorrect credit ratings and balance sheets that couldn't be trusted, the financial crisis is as much about bad data as it is about unfettered greed. At this point, most everyone has heard that S&P downgraded U.S. government debt on Friday. MORE
Further proving this, the researchers found that PE firms had the largest impact on innovation in industries and companies most likely to be financially constrained—industries, like manufacturing and pharmaceuticals, that are highly dependent on large outside investments, and firms that have a relatively low credit rating. There’s a longstanding debate about whether private equity investors create value for the firms they buy. MORE
But with robust growth rates and economies unburdened by legacy structures of the last century, Africans can innovate beyond what others are doing. The AfDB has the strongest credit rating of any organization in Africa and in 2008, it surpassed the World Bank in lending to Africa , a signal of Africa’s growing agency in its own development. Six years after the global recession began, many parts of the world are still struggling to achieve growth. MORE
To begin with, quite a few parts of it are heavily concentrated at a global level (the credit ratings business, for example, or global investment banking), and many more at the national level (just six financial institutions account for 46% of all U.S. Why did Jean Tirole win the Nobel Prize in Economics? MORE
OnDeck: OnDeck offers working capital loans to borrowers with a minimum credit score of 680 with rates around 9%. It also offers a line of credit which has a repayment period from 6 months till one year. To qualify for OnDeck, you must have a credit score of at least 600 and must have a business history of one year. Along with that, even if you repay your loan early, the interest rate will remain the same for the entire term of the loan. MORE
But remove the currency markets and you take away the constant credit rating service the currency markets provided. To replace all that the banks ought to have undertaken keener credit analyses, probably resulting in higher margins on loans to the peripheral countries. It was the same problem with credit analysis. It probably will be (and I expect should be), perhaps through the use of the credit default swaps market. MORE
To begin with, quite a few parts of it are heavily concentrated at a global level (the credit ratings business, for example, or global investment banking), and many more at the national level (just six financial institutions account for 46% of all U.S. Why did Jean Tirole win the Nobel Prize in Economics? MORE
Plus, if you do need to borrow more at a later stage, your business’s credit won’t be affected. It can work out very well, and with enough research, you will be able to find a variety of different loans with varying interest rates and special deals. You may not be eligible for all of them, however, and applying for too many loans all at once can damage your credit rating. A Credit Card. MORE
The second objective of all three parties was the avoidance of a credit rating downgrade. At the time (prior to the actual downgrade), the threat of a credit downgrade forced all three parties to the negotiating table. This increase in tax revenue derived from this group would be achieved through the elimination of existing tax deductions and an increase in these individuals’ tax rate. MORE
Recent headlines have focused on the debt ceiling , the recent credit rating downgrade , unemployment , and the other thorny fiscal challenges facing the United States. But consider this: increasing the country's average growth rate by one percentage point over the next 20 years would not only result in much higher incomes and more jobs for all Americans but would also obviate the need for drastic spending cuts today to reign in the government deficit. MORE
When did you last check your business credit score? Most business owners know that a personal credit score is important but many have never given their business score a thought. According to Experian, 59% of small business owners have never checked their commercial credit score. Most people do not know what a credit score is or how it works. But why is your business credit score important? Not already sharing information with any credit rating agencies? MORE
According to Jim Gallogly, no matter how low the OSHA recordable injury rate, if there is a serious incident — a fire, a chemical release, a worker is seriously hurt — no manager gets a bonus. ” Rethink how you think about injury rates. Injury rates, often called “OSHA recordables” are important metrics, in that they reflect the very real experience of your workforce. That said, you should set concrete goals for injury rates at your company. MORE
To get this type of loan all you need to do is apply for financing and also have a good credit score. Another option that works best for short term financing resolutions is an unsecured business line of credit that is indeed a more adaptable finance choice, which is perfect for numerous purposes. Many companies that want to create a good credit rating so that they can prepare their business for a much bigger loan in the future also use this type of loan. MORE
They gave AAA ratings to financial instruments that were essentially fraudulent to begin with and effectively worthless at the end. The fault here, though, lies as much in ourselves as in our ratings agencies. And S&P's ratings downgrade of the U.S., I should disclose here that John Chambers, the chairman of S&P's sovereign ratings committee, is a social acquaintance. Lots of overseas regulators and private investors have come to rely on the ratings as well. MORE
It also accounts in part for the failure of security rating agencies to accurately gauge the riskiness of the instruments they rate. And, when we allow financial firms to choose for themselves the agencies that rates their financial products, the agencies have every incentive to be lax. The data seem clear on David Sokol's conflict of interest in the Berkshire/Lubrizol deal. He bought shares in Lubrizol, and then encouraged Berkshire to buy the company. MORE
Credit Rating Related Topics Strategy Driven
JULY 9, 2020
Monitor your credit report so that you can actively make changes. The next thing you might want to think about is your current financial history regarding credit and your current score. You may want to look into your report on credit reference agencies so that you have a true idea of what is going on behind the scenes. This could be focusing on paying off debts or ensuring that all details on your credit file are correct.
Strategy Driven
SEPTEMBER 23, 2019
We all know that many entrepreneurs have bad credit score. Moreover, some go through personal difficulties which affect their personal credit score at the same time. Do you need good credit to start a business? While having a bad credit should never be a hindrance for you to start your own business. Improving your credit score allows you to get loans or business line of credit that you can use to build your business.
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Strategy Driven
JANUARY 14, 2021
If you are able to find a partner with good credit, you improve your situation immediately and with them listed as co-owner of the business, your chances of getting a loan shoot up. It might be best to spend a few years restoring your credit rating and building a healthy savings account.
Leading Blog
APRIL 5, 2019
While their job may have been setting or applying strict credit policies in the past, they may now start to wonder whether their traditional credit rating models are still effective. O NE OF the unfortunate side effects of living in an age of accelerating technology is having to deal with increased uncertainty. When faced with uncertainty, how should leaders react? Should they make a big bet, hedge their position, or just wait and see?
Strategy Driven
JULY 2, 2020
Financing a small business isn’t always easy, but there are plenty of solutions available, no matter how bad your credit rating is. Credit Card. When you don’t need a huge amount of capital, easily accessible funding options like credit cards are a useful tool. The great thing about credit cards is that they are flexible, so if you only need a short-term cash injection to buy supplies, a credit card may work for you.
Strategy Driven
FEBRUARY 20, 2018
Get Yourself A Great Rating. When you’re trying to be careful with your funds, and save wherever you can; you might think that getting yourself a credit card might be a bad idea. However, it’s worth getting one so that you’ll have a credit rating or score for you and your business. Without a credit score, it can be difficult to gain investment or receive a loan, and you’ll probably need these at some point to invest further in your company.
Strategy Driven
JULY 6, 2020
If your credit rating is in bad shape, Now Loans shows you can still acquire funding this way despite the hurdle. Marketing is an integral element for any business. From recent startups to long established organizations, continual promotion is necessary for a number of reasons. It allows a brand to become visible to new potential customers, it keeps them in the consciousness of current customers, and it can bring instant awareness to new products or services.
|
Strategy Driven
JANUARY 13, 2020
Plus, if you do need to borrow more at a later stage, your business’s credit won’t be affected. It can work out very well, and with enough research, you will be able to find a variety of different loans with varying interest rates and special deals. You may not be eligible for all of them, however, and applying for too many loans all at once can damage your credit rating. A Credit Card.
Strategy Driven
NOVEMBER 19, 2019
If you get a decent interest rate on your savings, as a low-interest loan may mean more money in your pocket overall. If your credit is good and you’re always getting loan offers, then you may decide to take out a standard bank loan to finance the car. You should calculate your monthly payments compared to rates offered by auto loan companies, and if possible, try to take out the loan over a shorter term to save on interest.
Strategy Driven
NOVEMBER 5, 2018
Plus, if you do need to borrow more at a later stage, your business’s credit won’t be affected. It can work out very well, and with enough research, you will be able to find a variety of different loans with varying interest rates and special deals. You may not be eligible for all of them, however, and applying for too many loans all at once can damage your credit rating. A Credit Card.
Women on Business
JULY 9, 2012
However, if your company can build business credit, you will find yourself gaining more opportunities to access cash. Whatever you do, don’t operate your business on your personal credit. Not only does it make your personal finances vulnerable, but business credit is a much more powerful tool professionally than personal credit. Make the financially fit decision Use these 5 quick tips to start building business credit today.
Strategy Driven
JANUARY 22, 2020
Finding a balance between a trusted lender and high approval rates can be tricky and making the wrong choice can end up costing you considerably more. To be able to find lenders who offer high approval rates with low-interest rates, you’ll need to look at the market in general to compare the lenders. One of the problems you may find is that some lenders will claim they can offer high acceptance even with poor credit and charge a fee to go through an application.
Strategy Driven
FEBRUARY 9, 2020
To get this type of loan all you need to do is apply for financing and also have a good credit score. Another option that works best for short term financing resolutions is an unsecured business line of credit that is indeed a more adaptable finance choice, which is perfect for numerous purposes. Many companies that want to create a good credit rating so that they can prepare their business for a much bigger loan in the future also use this type of loan.
|
Marshall Goldsmith
SEPTEMBER 26, 2011
This dysfunctional spinning led to countless disasters for buyers - who lost their homes and ruined their credit ratings. Q: In our company we value integrity, yet leaders - especially in marketing - are taught to "spin" to make products and services sound good to clients. When is "spinning" a message a good thing? When it is wrong? A: Every company that sells products or services "spins" these in a positive way to clients. This is not immoral, illegal, or unethical.
Harvard Business Review
NOVEMBER 15, 2013
Although credit-card holders with low credit ratings default more often than the rest of the population, the interest and fees they pay make them far more profitable for banks than any other groups of credit-card customers, according to research reported in The New York Times. Even during the financial crisis, when banks were hemorrhaging money on subprime mortgages, subprime credit cards were a major source of profits.
Harvard Business
AUGUST 16, 2016
Multi-billion dollar businesses such as Yelp, Zagat, TripAdvisor, Uber, eBay, Netflix, and Amazon crunch quantities of data including ratings of service providers and sellers in order to reduce customers’ risk. Currently, these good-bad-ugly ratings provide generic evaluations of sellers on standard scales. Big data holds out big promises for marketing.
Strategy Driven
SEPTEMBER 18, 2019
OnDeck: OnDeck offers working capital loans to borrowers with a minimum credit score of 680 with rates around 9%. It also offers a line of credit which has a repayment period from 6 months till one year. To qualify for OnDeck, you must have a credit score of at least 600 and must have a business history of one year. Along with that, even if you repay your loan early, the interest rate will remain the same for the entire term of the loan.
Harvard Business
APRIL 16, 2018
The company is a member of the Hitachi Group, listed on the first section of the Tokyo Stock Exchange, and enjoys an A+ credit rating and stable outlook from Ratings & Investment Information Inc.
Strategy Driven
AUGUST 15, 2019
The nature of your accommodation is determined by your income, while your ability to get loans and credit opportunities is hampered by a poor credit rating. There are many things in life that rely heavily on your personal finances. In short, your personal finances, if healthy, can promote your overall wellbeing – and if poorly managed, your personal finances can cause you a great deal of discomfort.
Strategy Driven
SEPTEMBER 24, 2019
Most agencies have very high credit ratings, and companies can even get advanced payments from financial institutions on the future payments of government contracts (if necessary). The federal government spends over $4 trillion per year, and state & local agencies spend over $3 trillion. Government spending is the largest “industry” in the United States representing over 13% of U.S. Gross Domestic Product (GDP) — with manufacturing second at 12% of GDP.
Harvard Business
JULY 8, 2016
The tool’s analysis of inside sales calls at one company found that although reps had long been coached on a broad set of practices, four specific behaviors correlated most closely with sales close rates. It notifies a company if one of its competitors files a credit check on a customer, signaling potential defection. This type of software has consistently improved call response rates, close rates and average order value.
Harvard Business
JULY 8, 2016
Turkey’s general credit rating is still higher than that of Brazil, Croatia, Portugal, Cyprus, and Serbia. The domestic saving rate , stagnant productivity , unemployment , and rapidly increasing labor costs all adversely affect growth. Three attackers armed with machine guns and strapped with explosives conducted a frontal assault on Istanbul’s Ataturk Airport on June 28. The brutal attack left dozens dead and hundreds injured.
Harvard Business
MAY 10, 2016
Blockchain technology can also take networked business models to a new level by supporting a whole host of breakthrough applications: native payment systems that run without banks, credit card companies, and other intermediaries will cut cost and time from transactions. Reputation systems built on social and economic capital and controlled by individuals, rather than by intermediaries like rating agencies and credit rating services, will change the dynamic between consumers and companies.
Harvard Business
MARCH 21, 2018
According to Jim Gallogly, no matter how low the OSHA recordable injury rate, if there is a serious incident — a fire, a chemical release, a worker is seriously hurt — no manager gets a bonus. ” Rethink how you think about injury rates. Injury rates, often called “OSHA recordables” are important metrics, in that they reflect the very real experience of your workforce. That said, you should set concrete goals for injury rates at your company.
Harvard Business
JANUARY 29, 2018
But the omnipresent rating game has one big catch: ranking up is incredibly hard, while ranking down is rapid and easy, like a free-fall. The reputation economy is based on the simplistic, but effective star ratings system. Anyone who’s ever rated their Uber driver or Airbnb host has actively participated. In 2012, Facebook applied for a patent that would use an algorithm to assess the credit ratings of friends, as a factor in one’s eligibility to get a mortgage.
Strategy Driven
SEPTEMBER 1, 2011
The second objective of all three parties was the avoidance of a credit rating downgrade. At the time (prior to the actual downgrade), the threat of a credit downgrade forced all three parties to the negotiating table. This increase in tax revenue derived from this group would be achieved through the elimination of existing tax deductions and an increase in these individuals’ tax rate.
Harvard Business Review
JULY 11, 2013
It appears that Enron''s final fatal mistake was to try to support its stock price instead of living up to key contractual obligations required to maintain its credit rating. What caused Enron''s bankruptcy was, quite simply, the loss of its investment-grade credit rating. So, what caused Enron to lose its investment grade rating? Were the rating agencies aware of Enron''s oft-maligned financing structures?
Harvard Business Review
AUGUST 11, 2011
They gave AAA ratings to financial instruments that were essentially fraudulent to begin with and effectively worthless at the end. The fault here, though, lies as much in ourselves as in our ratings agencies. And S&P's ratings downgrade of the U.S., I should disclose here that John Chambers, the chairman of S&P's sovereign ratings committee, is a social acquaintance. Lots of overseas regulators and private investors have come to rely on the ratings as well.
Harvard Business Review
AUGUST 9, 2011
nation's credit rating has the same tone. Ratings are great when there is misinformation or uncertain information, but that is not the case here. An "AA+" rating is defined by S&P as follows: "An obligation rated 'AA' differs from the highest-rated obligations only to a small degree. And all ratings agencies tell their constituents that their ratings are a guide, a compass, not a hard and fast rule.
Harvard Business Review
NOVEMBER 12, 2013
In financial terms, and especially with regards to credit, governments are no different. As the CEO of a credit business, I’m in a unique position to take a look at how the US actually stacks up. Several agencies rank government creditworthiness, and according to all of them, the US is pretty darn good: Moody’s rates us at the top of the scale with an AAA rating. If the government were a business, how would its credit rating look?
Harvard Business Review
MAY 30, 2012
Workplace inspections not only improve safety, they cause no discernible damage to employers' ability to stay in business and no reductions in sales or credit ratings, according to our research. The federal Occupational Safety and Health Administration (OSHA) is back in the news after the Government Accountability Office criticized the agency for taking too long to adopt new safety regulations. The GAO report says the delays compromise worker safety.
Harvard Business
MAY 17, 2017
This in turn boosted development by allowing relatively poor farmers to reliably send and receive payments at affordable rates, fostering economic growth by lowering transaction costs. Educational records, business histories, health care information, and credit ratings could all be made usable the world over, helping those who want to trade or travel to prove their credentials.
Harvard Business Review
MAY 31, 2011
It also accounts in part for the failure of security rating agencies to accurately gauge the riskiness of the instruments they rate. And, when we allow financial firms to choose for themselves the agencies that rates their financial products, the agencies have every incentive to be lax. The data seem clear on David Sokol's conflict of interest in the Berkshire/Lubrizol deal. He bought shares in Lubrizol, and then encouraged Berkshire to buy the company.
Harvard Business Review
JULY 9, 2015
But with robust growth rates and economies unburdened by legacy structures of the last century, Africans can innovate beyond what others are doing. The AfDB has the strongest credit rating of any organization in Africa and in 2008, it surpassed the World Bank in lending to Africa , a signal of Africa’s growing agency in its own development. Six years after the global recession began, many parts of the world are still struggling to achieve growth.
Harvard Business Review
SEPTEMBER 21, 2012
The idea is that direct driving behavior over time will be more predictive than traditional proxies such as age, credit rating, or geography. For insurers, transforming these data into their most usable form may require the creation of new composite variables or scores from the existing data — something like a driving risk score that gives weight to telematics data, geography, and credit score.
Harvard Business Review
APRIL 1, 2014
Money became a key element of these trust networks because it was cheaper to trust the money than the credit of a counterparty beyond your clan, village, or tribe. These hacks are things like badges, diplomas, dress codes, and, as it happens, credit ratings. The son of a Texan friend of mine decided earlier this year not to go to college, as someone like him would surely have done a few years ago.
Harvard Business Review
JANUARY 17, 2012
This pattern of abstracting further and further away from "real" things and "real" value has continued to the present day, giving us credit cards and collateralized debt obligations (not to mention casino chips). From Bernie Madoff to derivatives to the housing bubble to dubious AAA credit ratings, we continue to find new ways to encourage people to make financial leaps of faith. What happens when there is a mass loss of confidence in the financial system?
Harvard Business Review
AUGUST 10, 2011
As one might expect, officials are using the error and S&P's earlier failure to properly rate bundled mortgage products to argue that the downgrade is incorrect. From falsified mortgage applications and bundles of toxic mortgages, to incorrect credit ratings and balance sheets that couldn't be trusted, the financial crisis is as much about bad data as it is about unfettered greed. At this point, most everyone has heard that S&P downgraded U.S. government debt on Friday.
Harvard Business Review
JUNE 29, 2015
Further proving this, the researchers found that PE firms had the largest impact on innovation in industries and companies most likely to be financially constrained—industries, like manufacturing and pharmaceuticals, that are highly dependent on large outside investments, and firms that have a relatively low credit rating. There’s a longstanding debate about whether private equity investors create value for the firms they buy.
Harvard Business Review
JUNE 1, 2011
But remove the currency markets and you take away the constant credit rating service the currency markets provided. To replace all that the banks ought to have undertaken keener credit analyses, probably resulting in higher margins on loans to the peripheral countries. It was the same problem with credit analysis. It probably will be (and I expect should be), perhaps through the use of the credit default swaps market.
Harvard Business Review
NOVEMBER 6, 2014
To begin with, quite a few parts of it are heavily concentrated at a global level (the credit ratings business, for example, or global investment banking), and many more at the national level (just six financial institutions account for 46% of all U.S. Why did Jean Tirole win the Nobel Prize in Economics?
Harvard Business Review
NOVEMBER 6, 2014
To begin with, quite a few parts of it are heavily concentrated at a global level (the credit ratings business, for example, or global investment banking), and many more at the national level (just six financial institutions account for 46% of all U.S. Why did Jean Tirole win the Nobel Prize in Economics?
Harvard Business Review
AUGUST 8, 2011
Recent headlines have focused on the debt ceiling , the recent credit rating downgrade , unemployment , and the other thorny fiscal challenges facing the United States. But consider this: increasing the country's average growth rate by one percentage point over the next 20 years would not only result in much higher incomes and more jobs for all Americans but would also obviate the need for drastic spending cuts today to reign in the government deficit.
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