Snapshots of Do Market-Based Models Outperform Subscriber-Paid Ratings? Evidence from the Bond and CDS Markets

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that Bloomberg Default Grades provide stronger explanatory power for yield spreads and credit default swap (CDS) spreads than S&P or Egan-Jones ratings, while S&P ratings remain more effective than Egan-Jones ratings in identifying realized default events.