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Capital Market Rating
Oliver Everling and Jens Schmidt-Bürgel (editors): Capital Market Rating: Perspectives for Corporate Financing, Betriebswirtschaftlicher Verlag Th. Gabler, Wiesbaden 1st edition December 2005, http://www.gabler-verlag.de, hardcover, 318 pages, ISBN 3-409-14242-8. The financing requirements for companies have changed considerably in recent years. There is a trend from bank-oriented to capital-market-driven financing culture, and corporate bonds are becoming an […]
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Berechtigungsscheine as an Emerging New Asset Class in Germany
Eligibility certificates (Berechtigungsscheine) are short of becoming a new asset class in Germany. Since January 2021, the Federal Government of the Federal Republic of Germany has been distributing authorization certificates intended for the purchase of goods with practically no prior notice. Within a few days, markets were created where the certificates of entitlement are now […]
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German Authority Gives No Mercy to Insider Trading
On January 27, 2021, the Federal Financial Supervisory Authority (BaFin) reported an employee of the securities regulator to the Stuttgart public prosecutor on suspicion of insider trading. The employee had sold structured products with the underlying Wirecard AG on June 17, 2020. On June 18, 2020, Wirecard AG made public that it was not yet […]
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Financial Psychologist Recommends Inconspicuous Face masks
FFP2 masks are not just a question of operational risk and the operational risk rating of banks. “You are by far our dearest customers” – this or something similar can and could be read in some German shops, the reference to the required minimum distance. In view of the ongoing pandemic and slow vaccinations, the […]
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React Flexibly to Requirements With FFP2 Masks
Resilience in crisis situations and flexibility distinguish companies with good ratings. As a result of the COVID-19 pandemic, the core business of many industries continues to be severely affected. However, many medium-sized companies have reacted flexibly to the new conditions and adapted their production to the circumstances. An example for this is EPG Pausa GmbH […]
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Top Grade for the Distance University Run by the Rating Expert
Prof. Dr. Ottmar Schneck, Rector of the SRH Fernhochschule: “WOW – we did the triple! Three times in a row we have now received the coveted ‘Most Popular Distance University’ seal from ‘Distance Learning Check’ (Siegel ‚Beliebteste Fernhochschule‘ von ‚Fernstudium Check). We are very pleased to be able to hold this award from our students […]
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Green Bubbles and Adverse Selection Based on Sustainability Criteria
Why can ESG scores lead to unsustainable portfolios and “green” bubbles? Louis Larere, Portfolio Manager SRI, Zadig Asset Management, investigates this question. Sustainability is currently the most important trend in asset management and the integration of sustainability criteria in investment processes is already considered an “operating license” for many. Asset managers primarily use what are […]
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Crime Detection and Prevention Through AI-based Rating
All eyes on MULTIEYE BOS Manager Artec technologies AG (ISIN DE0005209589) strategically develops its business with authorities and organizations with security tasks (BOS). It was not just the storming of the Capitol in the United States or the attempt at the Berlin Reichstag that showed that security authorities need to integrate the monitoring and evaluation […]
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Sigmar Gabriel Explains to Moody’s the Euro as a Question of Sovereignty and Security
Moody’s Credit Trends 2021 Germany & Austria “As last year has shown, a global pandemic can turn everything upside down,” says Jens Schmidt-Bürgel in an interview with Sigmar Gabriel and starts talking about the greatest challenges facing the new administration in the USA. Sigmar Gabriel is the keynote speaker at Moody’s conference “Credit Trends 2021 […]
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Is The Notion of Efficiency Alien to Charity?
there are minimum requirements for recognized non-profit organizations. But can their efficiency and effectiveness also be rated? At effektiv-spenden.org Sebastian Schwiecker, founder and managing director of UES – Gemeinnützige Unternehmergesellschaft (haftungsbeschränkt) für effektives Spenden, tries to give very specific answers to the question of how you can achieve the greatest possible effect with your donation, […]
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The Virus Reverses Gender Equality, Not Only An Issue for Impact Investors
The COVID-19 pandemic has profoundly affected the lives of countless people around the world, with women being the hardest hit. Not only because they have a higher risk of COVID-19 infection due to their work in the health sector, but also because they are over-represented in professions where keeping your distance is more difficult and […]
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China Emerges as a Winner From The Corona Year 2020
China is one of the very few economies that were able to record growth last year, writes DZ BANK in its “Macroeconomics – Economic Perspectives – Economics Weekly“. In the final quarter, the Chinese economy even returned to the growth path of pre-Corona times. After all, the country in which the pandemic originated can count […]
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Art Market Picking Up
Players’ confidence in the art market is improving, measured live by Artprice.com. The theoretic principles behind this index are as simple as the ones behind the Consumer Sentiment Index in the US. This index constitutes a reference in every single global marketplace. The principles are based on the same method as used for the Consumer […]
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Quality Face Masks Are Among The Top Ten Donation Requests
Donations are resources. Who donates invests. Therefore, every donor is interested in how likely it is that the goals of the donation will be achieved. Assessing and classifying this probability of reaching the aims of a donation is the subject of a charity rating. What do donors want to donate? Donor priorities change with circumstances […]
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Well on Track with Around 50% Growth
The business development of artec technologies AG (ISIN DE0005209589) in 2020 was positive overall, despite challenges related to the corona pandemic, reports the company from Diepholz / Bremen. After annual sales that increased by around 50% to EUR 3.15 million, the Management Board expects – as forecast, subject to the review – a significantly improved […]
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Six UK-Based Credit Rating Agencies Lost Their Registrations
The European Securities and Markets Authority (ESMA), the supervisor of European Union (EU) credit rating agencies (CRAs), has withdrawn the registrations of CRAs based in the United Kingdom (UK). ESMA’s decisions follow the end of the transition period of the UK’s withdrawal from the EU, which occurred on December 31, 2020. UK credit ratings will […]
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Simple Protection Against Investment Fraud
594 victims of financial frauds reported to the Austrian Financial Market Authority (FMA) in 2020 – the highest figure in an upward trend in fraud cases that has been going on for years. The average damage is around € 42,000 per person. Many overlook the role of rating agencies. Credit Rating Agencies and other agencies […]
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IOSCO’s Profiling of Investors’ Risk Appetite
The International Organization of Securities Commissions (IOSCO) issued a report with some remarkable findings. Given its mission to assist regulators in responding to the retail market conduct issues caused by stress events such as the current COVID-19 pandemic, the report examines common retail misconduct risks that have arisen in the financial services industry during the […]
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Rock Tech Rocking the Market
What made the stock price of Rock Tech Lithium Inc. (Rock Tech) double within just two months? The answer might be here: Apeiron Investment Group, the family office of serial entrepreneur and investor Christian Angermayer is committed to the success of Rock Tech. Christian Angermayer sees a huge opportunity and the perfect timing for his […]
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Mitigate Operational Risks By Using FFP2 Face Masks
For companies in which employees cannot always keep a safe distance from another, the infection of individual employees and the consequential officially ordered quarantine measures can result in major economic losses. Companies can effectively counteract this by using FFP2 masks, because FFP2 masks, in contrast to normal mouth and nose protection, also protect the wearer […]
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Vectron’s Recurring Income Strengthens Its Rating
Vectron Systems AG (Vectron), a leading provider of intelligent, digitized cash register systems consisting of hardware, software and cloud services, with a focus on the gastronomy and bakery sectors, has created itself a better position for its credit ratings. A stable rating history is ensured in particular by sustainable, recurring income. Vectron makes use of […]
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Why Art Rating Criteria Need to Be Repaired
The Artprice Report, covering 20 years of Contemporary Art auction history, is a basis for understanding why evidence-based “art rating” is more important and urgent today than ever before. The complexity and global nature of the art market has never been greater. In the last two decades, decisive impetus came from China. “In 20 years,” […]
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From Alibaba as “Amazon of China” to Amazon as “Alibaba of the USA”
“Innovative market leaders can excel in emerging countries”, writes a clever investor in his “Christmas letter”, who may be quoted here, but wants to remain anonymous, since his letter is only addressed to his “investors and serves to maintain contact with a few other acquaintances / friends”: “When it comes to innovation, the big US […]
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How A Credit Rating Agency Should Determine the Weights of ESG Criteria
Moody’s “General Principles for Assessing Environmental, Social and Governance Risks” relate to issues which may have greater downside risk than upside potential for rated issuers. The introduction of these principles is perceived by many issuers as an additional pressure that weighs on them in order to prove their sustainable management. This pressure is unsettling, especially […]
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German Medium-Sized Bond Issuers Avoid German Government Loans
The financial reports of medium-sized bond issuers in Germany published in 2020 were evaluated and analyzed by URA Research. The URA ratings for 7 bonds were confirmed. According to the report from Munich, the assessment has improved for 1 bond and deteriorated for 10 bonds. The 3rd bond from Karlsberg Brauerei GmbH and the 6th […]
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Future Divisional Structure of S&P Global
S&P Global (NYSE: SPGI) and IHS Markit (NYSE: INFO) announced the future divisional structure of the combined company, effective upon completing their pending merger: Divisional Structure S&P Global Ratings will be led by Martina Cheung, currently President of S&P Global Market Intelligence, upon close. Effective immediately, Martina Cheung will also lead the S&P Global ESG […]
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Double-edged Strengthening of Banks’ Equity
A few days after the European Central Bank and the German Federal Financial Supervisory Authority (BaFin), the European Systemic Risk Board (ESRB) is now recommending that distributions continue to be restrictive in view of the corona pandemic. General Board of the European Systemic Risk Board held its 40th regular meeting on December 15, 2020. According […]
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DEFAMA’s Gemstones Among German Commercial Real Estate
The Berlin-based Deutsche Fachmarkt AG (DEFAMA) invests specifically in small retail properties in small and medium-sized cities, predominantly in northern and eastern Germany. The most important purchase criteria are two or more chain stores with good credit ratings as anchor tenants, if possible no more than 10 tenants and an annual net rent of at […]
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Lloyd Howell
On December 18, 2020, Moody’s Corporation announced that Mr. Lloyd Howell has been elected as a member of the Company’s Board of Directors, effective as of March 15, 2021. Lloyd Howell also has been elected to serve on the Board’s Audit, Governance & Nominating and Compensation & Human Resources Committees, effective as of March 15, […]
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CoStar: A Star Rising Higher
The Washington based CoStar Group (WKN: 922134 / ISIN: US22160N1090, Symbol: CSGP), with a staff of over 4,300 worldwide, is a company to watch in the rating industry, since CoStar is a leading provider of commercial real estate information, analytics and online marketplaces. In addition to its importance to the rating industry, it is also […]
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Shenzhen – The World Economy of Tomorrow
You can read it in old German travel guides: Shenzhen was once a fishing village. Shenzhen is not mentioned in the five-volume “Der Neue Brockhaus” from 1975. In 1993, the renowned Brockhaus Encyclopedia reported in 24 volumes under the short keyword “Shenzhen” of only 280,000 inhabitants. Even then it may have irritated readers that the […]
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Moody’s Heatmap Shows Heightened Environmental Credit Risk
Moody’s analysts have revised their environmental classification to reflect evolving environmental, social and governance standards, disclosure frameworks and market conventions among issuers and investors. Environmental risks can arise from regulatory and policy issues, hazards or a combination of both. The five environmental categories Moody’s considers most material to credit are carbon transition, physical climate risks, […]
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S&P And Moody’s Are Losing Market Share in the EU
For the first time, the European Securities and Markets Authority ESMA has reported a decline in market shares in Europe for both of the major US rating agencies. The authority thus discloses a remarkable development. Never before have the two market leaders, who have been issuing their credit ratings worldwide according to recognized standards and […]
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Screen Applicants Faster
With the Talent Report™ Select All solution, Equifax (NYSE: EFX) facilitates faster, more-informed hiring decisions for talent acquisition professionals with reliable verifications of employment via The Work Number® database. Talent Report Select All delivers contextual data in support of a more holistic view of the candidate in a single report, helping hiring managers make critical […]
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2020 Becomes the First Year of Digital Currency
From October 8th to 18th, 2020, Luohu District, Shenzhen, China, conducted a digital currency experiment, issuing digital currency red envelopes totaling 10 million RMB (approximately 1.5 million Dollars). From the 8th to the 11th October, 1,913,800 Shenzhen residents reserved a lottery for red envelopes, and 50,000 of them received digital RMB red envelopes, each at […]
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57 Registered Credit Rating Agencies in China
Here is the most recent list of 57 registered credit rating agencies in the People’s Republic of China as of October 11, 2020:
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Retail Investors Benefit From the Quant IP Innovation Score
The Munich investment boutique Quant IP is launching a new tranche for private investors for its equity fund Quant IP Global Innovation Leaders Fund. This gives investors the opportunity to invest small sums in the fund or to take out a savings plan. “We want to give self-decision makers the opportunity to invest in our […]
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No Movement! Data or Life!
For many people it has become a reality: life is completely monitored. Hence it is no longer a question of whether life is, can or should be observed by strangers. It’s all about how, according to which rules, and by whom, with what consequences. Anyone who wears a smartwatch at night transmits their data to […]
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Groundbreaking Multifunctional Monitoring and Surveillance System for Compliance with Corona Hygiene Protection Measures
Artec technologies AG (ISIN DE0005209589) is now offering a multifunctional monitoring and monitoring system for compliance with corona hygiene protection measures called MULTIEYE OverCrowding Watch App. The software is based on existing artec products that have proven themselves in practice with the support of AI-based software components. The listed software company from Diepholz, Germany, has […]
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Credit Rating Information Failed to Deliver
AvP Deutschland GmbH is an example of a rating dilemma: The company is too small to belong to the group of companies closely monitored by recognized rating agencies automatically, and too large to be ignored as a risk. In general, credit reference agencies only use the financial statements and other official information available from the […]
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SME Rating Dilemma
Small and medium-sized companies have difficulties communicating their creditworthiness credibly. Recognized credit rating agencies concentrate their services on companies that go through a committee-based rating process. The legal framework in Europe offers no alternative to this. Only those who meet all the requirements of the EU regulation on credit rating agencies can be recognized as […]
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Separation of Product Comparison, Brokerage and Insurance Services
Any rating company who does not limit itselve to the comparison of financial services, but also insures the customer against risks, must obtain approval for this. There is no free market for financial services in Germany. The Federal Financial Supervisory Authority in Germany, Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), ordered the CHECK24 comparison portal CHECK24 Vergleichsportal Finanzen […]
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Legal Characteristics of Forest Ownership
At the federal and state level, there are laws on forests in Germany that must be taken into account with every rating of forest investments. The federal states regulate rights and obligations differently. In the following see the example of the Hessian Forest Act (GVBl. 2013 S. 458 vom 08.07.2013). The aim of the Hessian […]
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Genealogy of Country Risk
It is difficult to determine exactly when the concept of country risk was forged. The expression was used as far back as 1967 by Frederick Dahl – then assistant director of the Division of Examinations at the Board of Governors of the US Federal Reserve System – in a research paper addressing the international operations […]
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Cost Rating for Private Owners When Renting
Real estate remains the most popular form of investment among Germans. In times of volatile stock markets, a real estate investment is still seen by many private investors as a secure return opportunity. However, not all private owners use their apartments themselves, but rent them out. In doing so, however, they often underestimate the costs […]
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Unfair Advertising with Ratings on Social Media Platforms
Advertising with ratings on social media platforms that are given in return for participating in a competition is unfair. It can be assumed that a lottery will generate a considerable number of ratings. The Higher Regional Court of Frankfurt am Main (OLG) therefore banned the advertising of the defendant whirlpool seller in a judgment published […]
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A Case of Rating Repair for a Small Publicly Traded Company
A small publicly listed company is a company whose shares are bought and sold on a particular stock market even though turnover or total assets are small in comparison to other listed companies. Every big story starts small. Therefore, among small companies there are often also stock corporations with exceptionally high potential for a good […]
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Credit Rating and Residual Debt Insurance
The question of the extent to which the creditworthiness of the borrower has an impact on the take out of a residual debt insurance is repeatedly the subject of discussions, i.e. whether consumers with lower creditworthiness are sold residual debt insurance more often than consumers with better creditworthiness. The German Federal Financial Supervisory Authority (bundesanstalt […]
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Credit Rating Criteria for Leasing Companies
Under the umbrella of the Auditing Association of German Banks, GBB-Rating Gesellschaft für Bonitätsbeurteil mbH (hereinafter referred to as “GBB-Rating”) provides long-term credit ratings of leasing companies. GBB-Rating has published criteria for the rating of leasing companies in German on its website. Unfortunately there was (August 23, 2020) no English translation. In the following are summarized some of their […]
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Leasing Company Rating
Leasing companies have been analyzed by leading US credit rating agencies for decades. In addition to these rating agencies, there are other rating approaches for leasing companies. Three of these are briefly presented here. The first relates to a joint initiative by Landesbanken and other credit institutions to operate bank-internal system for rating leasing companies. […]
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Country Risk: The Bane of Foreign Investors
Country Risk: The Bane of Foreign Investors (by Norbert Gaillard, Springer, July 2020) is an original and innovative research work. Chapter 1 introduces the key concepts. Chapter 2 establishes that impediments to international business preceded any mention of the country risk concept. I investigate how country risk has evolved and manifested since the advent of […]
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More than 300 Raters Worldwide
There is a simple definition of the word “rater”: “one that rates”. A rater is specifically a person who estimates or determines a rating. Not every rater is a rating agency. In a number of countries, only legal persons can be recognized as rating agencies. In most countries, individuals are free to express their opinion […]
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30 Registered Credit Rating Agencies in China
The credit rating industry in China has a history of more than 30 years. According to the “Interim Measures for the Administration of the Credit Rating Industry”, which came came into force on December 26, 2019, the People’s Bank of China is the department in charge of the credit rating industry and takes charge of […]
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What Happens When You Become A Founder and Start a New Rating Agency?
What happens when you start a new rating agency and become a founder? The 4 Ps are used here to identify some key factors for a new rating agency, including what investors and issuers want from them, how their services meets or fails to meet those needs, how rating services are perceived in the world, […]
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Rating in Austria
The Recognized Credit Rating Agencies listed by the European Securities and Markets Authority (ESMA) have been registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on Credit Rating Agencies (the Credit Rating Agencies Regulation). The list does not contain a rating agency […]
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Recognized Credit Rating Agencies
There are almost 200 countries in the world. Many countries do not have specific regulations on rating activities, but most industrialized countries do have laws on Credit Rating Agencies (CRAs). Credit Rating Agencies are required to get registered, licensed, recognized or certified. Until the Credit Rating Agency Reform Act of 2006 was introduced in the […]