Just before the collapse of the subprime mortgage market in 2007, the most important credit-rating agencies rated mortgage-backed securities with Aaa and AAA ratings. Explain how it was possible that a few months into 2008, the same securities had the lowest possible ratings. Should we always trust credit-rating agencies?

Answer rating: 100% (QA)

The credit rating agencies are the organizations which rate the quality of the corporate and ... View the full answer