{"id":18403,"date":"2026-06-09T21:38:00","date_gmt":"2026-06-09T19:38:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=e30abdb579a2122a8368fb7b877ff4ac"},"modified":"2026-06-09T21:38:00","modified_gmt":"2026-06-09T19:38:00","slug":"kbra-releases-research-private-credit-much-ado-about-nothing-perspectives-on-columbia-business-school-paper-about-private-ratings","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=18403","title":{"rendered":"KBRA Releases Research \u2013 Private Credit: Much Ado About Nothing \u2013 Perspectives on Columbia Business School Paper About Private Ratings"},"content":{"rendered":"

NEW YORK--(BUSINESS WIRE)--#creditratingagency<\/a>--KBRA releases commentary following the recent publication of the Columbia Business School\u2019s Rating Without Market Discipline paper, which raises important questions regarding the growth of private ratings in U.S. life insurer portfolios and the interaction between ratings and regulatory capital. The paper concludes that privately rated bonds understate credit risk, experience higher subsequent impairment rates, and contribute to lower required capital than comparable publicly rated bonds.<\/p><\/a><\/a>

\nThis KBRA research reviews the paper\u2019s methodology and its interpretation of the evidence. Our objective is not to argue that private ratings should be exempt from scrutiny. Rather, it is to help fixed income investors evaluate whether the evidence presented in the paper supports the breadth of its conclusions\u2014which, we believe, they do not. Put differently, the paper\u2019s rhetorical emphasis is on systemic risk, policyholder welfare, widespread rating inflation, and the absence of market discipline, while its principal quantitative estimate is a hypothetical modeled capital adjustment that is insignificant relative to the financial resources of the industry.<\/p>

\nKey Takeaways<\/strong><\/p>