Brief The US Treasury’s Credit Rating Exercise
First Steps Out of the Private-Label Securities Desert
Laurie Goodman, Jim Parrott
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As part of an effort to revive the moribund private-label securities (PLS) market, the US Treasury Department recently conducted an exercise with the major ratings agencies. This exercise was intended to boost investor confidence in the ratings process—a critical piece of the PLS system that failed during the housing crisis. The exercise revealed five important lessons we discuss in this brief.
Research Areas Housing finance Housing
Tags Federal housing programs and policies Housing and the economy Multifamily finance Single-family finance Agency securitization Credit availability Nonagency securitization Finance
Policy Centers Housing Finance Policy Center