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Author: FoolMeOnce Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Bond Ratings Definitions Date: 1/6/2002 5:38 PM
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A review of ratings definitions published by Moodys and Standard and Poors reveals quite subjective descriptions. Is anyone aware of the existence of hard data describing default rates as a function of rating at the time of issue? Thank you.

Regards,
FMO
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Author: kh Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2723 of 35400
Subject: Re: Bond Ratings Definitions Date: 1/6/2002 9:13 PM
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Moody's puts out a report each year on corporate bond default and recovery rates.

Lots of good data on default rates, for example, default rates by industry, default rates by rating category at the time of default, etc. Unfortunately, I see nothing there that answers your question concerning default rates by rating category at the time of issue. Still, the article makes for interesting reading.

Here's a summary of Moody's February 2001 report. (It includes a link to download the complete report.) -
http://www.defaultrisk.com/pp_other_16.htm



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Author: dan2 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2724 of 35400
Subject: Re: Bond Ratings Definitions Date: 1/7/2002 12:39 AM
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Hi,

This issue was addressed in post 2416, on this board.

Dan

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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2727 of 35400
Subject: Re: Bond Ratings Definitions Date: 1/7/2002 9:38 AM
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What would also be an interesting study is if the agencies' ratings drive the market price/yield, or if the price/yield anticipates changes to the ratings.

How much % does a bond typically drop in price from the time it enters a category to the time its rating is cut?

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