Debt Rating Agencies’ Role in the Global Debt Capital Markets: Past, Present, & Future

Join the Global Interdependence Center for this half day conference as we explore the role, influence and evolution of rating agencies as they pertain to capital debt markets.

Debt ratings agencies are instrumental to the debt capital markets.

Firms such as S&P, Moody’s and Egan Jones commit considerable resources in assessing the creditworthiness of borrowers, enabling investors and lenders to make informed credit decisions.

However, with the onset of the global financial crisis, there are many questions. Does the present debt rating system actually work? Is it proactive, or reactive? How was the present system created? Are there conflicts of interest? What impact does “politics” have with respect to rating determinations? Most importantly, does the present system & process serve investors adequately by providing independent information?

Please join us on February 29th at the Federal Reserve Bank of Philadelphia as we address these questions.

Jim Allen of CFA Institute will lead a panel discussion in which John Carbone of Vanguard, Natalie Cohen of Wells Fargo and Peter Demirali of Cumberland Advisors will share their views on the present ratings systems as it relates to money market funds, municipal securities, corporate debt securities and asset backed securities.

David Kotok of Cumberland Advisors will lead a panel discussion in which Mark Adelson of S&P and Bill Hassiepen of Egan Jones Ratings Services will compare and contrast “issuer paid research” and “investor paid research”. The essence of this conversation relates to the truly independent nature of rating agency research.

Norbert Gaillard, author of the book “A Century of Sovereign Ratings” will provide insight on sovereign debt ratings, an extremely relevant topic following the August 2011 downgrade of the US Treasury by S&P and the present European financial crisis.

Peter Kerstens will represent European investors’ assessment of US ratings agencies.

Catherine Mann, of Brandeis University will provide keynote comments addressing issues such as the governmental mandate, rebuilding confidence, assessment of economic capacity vs. political will and, ultimately, how does the present ratings controversy affect the global capital markets going forward.

We wish to thank the CFA Society of Philadelphia for joining the GIC in hosting this conference. Our mission is to provide knowledge for our guests, thus enabling them to better understand the debt ratings process and, as a result,  be able to more fully serve their clients and constituents.

Agenda

7:30 am – Registration & Coffee Reception

8:00 am – Welcome, Bill Dunkelberg, Chair, GIC

8:15 am – Session I: The Ratings Agencies Today

• John Carbone, Principal, Vanguard
• Natalie Cohen, Senior Analyst, Wells Fargo
• Peter Demirali, Managing Director, Cumberland Advisors
  Moderator: James Allen, Head of Capital Markets Policy, CFA Institute

9:15 am – Break

9:30 am – Session II: Issuer Paid Research vs. Investor Paid Research

• Mark Adelson, EMD, Senior Research Fellow, Standard & Poor’s
• Bill Hassiepen, VP and Senior Analyst, Egan Jones Rating Services
• Jim Nadler, President and COO, Kroll Bond Ratings
  Moderator: David Kotok, Chairman and CIO, Cumberland Advisors and GIC Vice Chair

10:30 am – Break

10:45 am – Session III: Sovereign Debt

• Norbert Gaillard, Economist and Independent Consultant

•  Peter Kerstens, Counselor, Economic and Financial Affairs, European Union Delegation to the USA

11:30 am – Break

11:45 am – Session V: Keynote Presentation “The Evolution of Credit Default Swaps and Their Relevance for the Debt Capital Markets Going Forward”

• Catherine Mann, Barbara ’54 and Richard M. Rosenberg Professor of Global Finance International Business School, Brandeis University and Visiting Scholar, Federal Reserve Bank of Boston

12:30 pm – Conclusion followed by book signing with Norbert Gaillard