Bond Markets, Credit Ratings, and Emerging Market Finances

India's brawl with debt vigilantes tells bigger story
https://asia.nikkei.com/Opinion/India-s-brawl-with-debt-vigilantes-tells-bigger-story
 
Credit-Rating Agencies Could Derail Economic Recovery
https://www.project-syndicate.org/commentary/credit-rating-agencies-could-derail-economic-recovery-by-jayati-ghosh-2021-03
Professor Ghosh notes:
“This points to a systemic problem in international finance: the extraordinary – and undeserved – power wielded by a few private credit-rating agencies. Just three – Moody’s, S&P Global Ratings, and Fitch Ratings – control more than 94% of outstanding credit ratings. And there is significant cross-shareholding among them.
These oligopolistic firms are market movers and makers, influencing financial portfolio allocations, the pricing of debt and other financial instruments, and the cost of capital. Bolstering their authority, the US Securities and Exchange Commission has recognized them as official statistical rating organizations. And many institutional investors, required by law to hold only “investment-grade” assets in their portfolios, must abide by the rating agencies’ verdicts”.
 
Goldman, Cerberus Buy Rare Indian Junk Bond Offering 21%
https://www.bloomberg.com/news/articles/2021-03-16/goldman-cerberus-invest-in-rare-indian-junk-bond-offering-21