
Principal, Fons Risk Solutions
Member of the Financial Services Council
Jerome Fons, Ph.D., is the Principal of Fons Risk Solutions, a firm providing advisory services in the areas of measuring and pricing credit risk, developing statistical credit risk models, and Basel II implementation. Mr. Fons also advises asset managers on investment strategies with respect to rating agencies. Prior to starting his own firm in August 2007, Mr. Fons was the Managing Director of Credit Policy at Moody's Investor Service. He was the Chair of Moody's Fundamental Credit Committee, a member of Moody's Credit Policy Committee, and a member of Moody's Country Risk Committee. Mr. Fons joined Moody's in 1990 as Vice-President/Economist. At that time, he authored Moody's corporate bond Default Studies, served as the chief mortgage economist for MBS group, developed a rating methodology for structured finance products and assigned and monitored ratings for MBS. (This is me - Update Profile)
White Paper on Rating Competition and Structured Finance (Part 2)
April 10, 2008
Study: subprime crisis spurs lawsuits | money.cnn.com
Continued from part 1.
White Paper on Rating Competition and Structured Finance (Part 1)
April 10, 2008
Study: subprime crisis spurs lawsuits | money.cnn.com
As subprime mortgage losses cascade throughout the global financial system, attention has turned to the structure and performance of the bond rating industry. Faulty ratings on securities backed by subprime mortgages are believed responsible for billions of dollars in losses. This White Paper argues that any such faulty ratings are due in part to conflicts inherent in the issuer-pays rating agency business model. Such conflicts, when combined with existing structured finance practices, have led to widespread rating shopping. Efforts to increase competition among rating agencies may exacerbate the problem unless fundamental changes occur in the structured finance area, particularly in attitudes toward unsolicited ratings.
| Study Group Name | No. Members |
|---|---|
| Structured Finance Experts | 380 |
| Research, Sales, and Trading Consultants (US) | 278 |
| Rating Agency Experts | 147 |
| Financial Guaranty Experts | 91 |
Jerome Fons has not participated in any GLG Live Meetings.