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17 November, 2009

Unmasking Ratings: The Politics of Sovereign Debt

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Ratings agencies have one foot in the official sector and one foot in the private sector. Today both feet are on shaky ground. Basel II, U.S. insurance, pension and bank capital accords all integrate ratings agencies into their risk frameworks, while issuing countries rely on ratings to help them minimize the cost of debt capital as they bring bonds to market. These conflicting goals are hard to miss. Meanwhile, private investors have incentives to use ratings as though they were endogenous credit factors, and financial intermediaries have incentives to let those investors live comfortably with that approach. The status quo is not sustainable but there is little discussion of alternative arrangements, let alone consensus.


This conference will explore bias in sovereign ratings and the costs and impacts on lesser developed countries.

Date: Tuesday, November 17, 2009

Time: 1:15 p.m. to 2:45 p.m., GMT -5

Venue: Conference Room 6, UN Headquarters



If you have any questions regarding the event, please contact Mr. Ravi Singh at (212) 963-6387 or e-mail singh@unu.edu

Speaker Profiles:
Joshua Rosner, Managing Director, Graham Fisher & Co.
Ann Rutledge, Founding Principal, R&R Consulting

Moderator Profile:
Jean-Marc Coicaud, Director, UNU-ONY


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JR Small Headshot.jpgJoshua Rosner is a Managing Director at the independent research consulting firm Graham Fisher & Co., where he advises regulators and institutional investors on housing and mortgage finance issues. Mr. Rosner was among the first analysts to identify operational and accounting problems in the government-sponsored enterprises (GSEs), the peak in the housing market, the likelihood of contagion in credit markets, and the weaknesses in the credit rating agencies' collateralized debt obligation (CDO) assumptions. His work on GSEs, credit rating agencies, and mortgage markets has resulted in invitations to present both privately and publicly before numerous organizations, businesses, policymakers, legislators, and regulators. Mr. Rosner has coauthored papers on the risks of CDOs to the mortgage finance market and the risk of misapplication of ratings in the structured finance market. Previously, he was the Managing Director of Financial Services Research for Medley Global Advisors. Prior to joining Medley, Mr. Rosner was an Executive Vice President at CIBC World Markets and a Senior Vice President at its predecessor firm, Oppenheimer and Company.



AR Small Headshot.jpgAnn Rutledge specializes in bond market development, structured finance and micro-market governance issues for exchanges and OTC markets. After serving as a special consultant to the Hong Kong Futures Exchange in the early 1990s, she became the head of J.P. Morgan's growing Asian derivative prime brokerage business. Later, as the lead structured and project finance analyst for Moody's Investors Service in non-Japan Asia, Ms. Rutledge battled sovereign ceiling issues directly. In 2000, she co-founded R&R Consulting with Sylvain Raynes, a fellow Moody's alumnus who shared her frustration with how credit rating practices distort pricing in the capital markets. More recently, Ms. Rutledge has served as the securitization expert in structured-finance litigations in the US and UK. She co-wrote two books with Dr. Raynes, both published by Oxford University Press: The Analysis of Structured Securities (2003) and Elements of Structured Finance (forthcoming in December 2009). Ms. Rutledge is an Adjunct Associate Professor of Finance at The Hong Kong University of Science and Technology.


JMCphoto.jpgDr. Jean-Marc Coicaud is the Director of the United Nations University (UNU) Office at the United Nations in New York. He was Senior Academic Officer at the UNU in Tokyo from 1996 to 2003. Before joining UNU, he served in the Executive Office of the United Nations Secretary-General as a speechwriter for Dr. Boutros Boutros-Ghali (1992-1996). A former fellow at Harvard University (Center for International Affairs, Department of Philosophy and Harvard Law School, from 1986 to 1992), Coicaud has held appointments such as Cultural Attaché with the French Ministry of Foreign Affairs, Legislative Aide with the European Parliament (Financial Committee), Associate Professor at the University of Paris, Visiting Professor at the Ecole Normale Supérieure-Ulm in Paris and Visiting Professor at Tsinghua University School of Public Policy and Management. He has also taught at the New School for Social Research (New York). He has been a Senior Fellow at the United States Institute of Peace (Washington, D.C.) and a Global Research Fellow at New York University School of Law. Coicaud holds a Ph.D. in political science-law from the Sorbonne and a Doctorat d'Etat in philosophy from the Institut d'Etudes Politiques of Paris. In addition, he holds undergraduate and graduate degrees in literature and linguistics. Jean-Marc Coicaud is a member of the Advisory Board of Carnegie Council's Global Policy Innovations (New York). He also serves as an adviser for the Fondation pour l'Innovation Politique (Paris).

Jean-Marc Coicaud has published 14 books in the fields of comparative politics, political and legal theory, international relations and international law. They are available in English, French, Japanese, Chinese, Spanish and Arabic, and include the following single-authored books: Politics and Legitimacy: A Contribution to the Study of Political Right and Political Responsibility (Cambridge University Press, 2002), Beyond the National Interest (United States Institute of Peace Press, 2007), Kokuren no Genkai/Kokuren no Mirai (Future of the UN/Limits of the UN - Fujiwara Shoten, 2007), Mai Xiang Guo Ji Fa Zhi (Towards the International Rule of Law - Sanlian Shudian, 2008). His latest book, co-edited with Hilary Charlesworth, is Fault Lines of International Legitimacy (Cambridge University Press, 2009).

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Page last modified 2009.10.27.


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