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Credit Ratings Explained: Can You Trust a AAA Rating? | Canadian Investing
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Episode Summary A single letter grade assigned by a private company can trigger a massive market dislocation. This episode explores the high-stakes boundary between investment grade and high yield debt. It breaks down how a one-notch downgrade can spark a forced-selling stampede, the structural conflicts behind the rating agency model, and why a perfect credit rating does not make a bond safe from substantial losses.
Key Concepts
An Opinion, Not a Guarantee: A credit rating is simply a…
The skinny
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