Publications

January 2004 (Revised March 2005)
Background Note

Bond Ratings

By: David F. Hawkins

Describes the considerations entering into a long-term debt rating. View Details

Keywords: Bonds

May 2017 (Revised January 2019)
Teaching Note

Angie's List: Ratings Pioneer Turns 20

By: Ayelet Israeli and Robert J. Dolan

Teaching Note for HBS No. 517-016. View Details

Keywords: Ratings; Marketing; Conjoint Analysis; Market Research; Pricing Strategy; Product Line Management; Two Sided Markets; Freemium; Ecommerce; E-commerce

September 2008 (Revised September 2011)
Background Note

Note: Credit Rating Agencies

By: William E. Fruhan

The note examines the role of credit rating agencies in capital markets, with emphasis on the role of these agencies in the recent credit crisis and recommendations for change. View Details

Keywords: Financial Crisis; Capital Markets; Credit; Governing Rules, Regulations, and Reforms; Standards

Fast Answer

Municipal bonds: ratings

Where can I find ratings of municipal bonds? Use Bloomberg: For credit worthiness of US states and territories, type STGO then press GO. To identify specific state securities, type SECF then press GO. Change the... View Details

2024
Working Paper

LASH Risk and Interest Rates

By: Laura Alfaro, Saleem Bahaj, Robert Czech, Jonathan Hazell and Ioana Neamtu

We introduce a framework to understand and quantify a form of liquidity risk that we dub Liquidity After Solvency Hedging or “LASH” risk. Financial institutions take LASH risk when they hedge against losses, using strategies that lead to liquidity needs when the value... View Details

Keywords: Liquidity; Monetary Policy; Non-bank Intermediaries; Hedging; Risk and Uncertainty; Investment Funds; Financial Condition; Interest Rates

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March 1984 (Revised July 1985)
Background Note

Note on Exchange Rate Determination

Discusses exchange rate determination in world of flexible rates. The fundamentals of supply of and demand for foreign exchange are explained. View Details

Keywords: Currency Exchange Rate

March 1989 (Revised April 1990)
Exercise

Interest Rate Exercises

By: Richard S. Ruback

Keywords: Interest Rates

March 1984 (Revised August 1996)
Case

B.F. Goodrich-Rabobank Interest Rate Swap

By: Jay O. Light

A U.S. manufacturing organization and a Eurobank swap fixed and floating rate obligations to reduce their financing costs. View Details

Keywords: Financing and Loans; Cost Management; Production; Interest Rates; Credit Derivatives and Swaps; Auto Industry; Financial Services Industry; United States

January 2008 (Revised May 2013)
Background Note

Accounting for Interest Rate Derivatives

Explains the accounting for interest rate derivatives under Statement of Financial Accounting Standards 133. View Details

Keywords: Accounting; Financial Instruments; Interest Rates; Standards

Fast Answer

Sovereign debt ratings

Where can I find sovereign (national) debt ratings? Bloomberg give current ratings by Standard & Poor's, Moody's and Fitch. Hit the yellow GOVT key, type TK, then hit GO. Select desired country from the menu, then hit GO.... View Details

March 1987
Article

Using Survey Data to Test Standard Propositions Regarding Exchange Rate Expectations

By: J. Frankel and K. A. Froot

Keywords: Currencies; Exchange Rates; Asset Pricing; International Macroeconomics; Monetary Policy; Currency Controls; Fixed Exchange Rates; Floating Exchange Rates; Currency Bands; Currency Zones; Currency Areas; Rational Expectations; Analytics and Data Science; Finance

April 1995
Background Note

Growth Rate Analysis

By: David F. Hawkins

Keywords: Growth and Development

Article

The Factor Environmental Ratings Miss

By: Auden Schendler and Michael W. Toffel

There's a problem with most major environmental rankings of businesses: too often, the ratings fail to incorporate advocacy activities that influence environmental regulation. View Details

Keywords: Governing Rules, Regulations, and Reforms; Problems and Challenges; Rank and Position; Environmental Sustainability; Power and Influence

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April 2001
Background Note

Exchange Rate Terminology and Analytics

An introduction to the concept of exchange rates, simple analytics regarding currency appreciation and devaluation, and real and nominal exchange rates. Concludes with a series of examples that illustrate how shifts in exchange rates and inflation can affect firms'... View Details

Keywords: Competition; Currency Exchange Rate; Inflation and Deflation

May 2005 (Revised February 2006)
Background Note

Introduction to Interest Rate Options

Introduces interest rate derivatives, covering floors, caps, and swaptions. Introduces floors, caps, and swaps by analogy to equity puts, calls, and stocks. As with calls and puts on equity, a put-call parity relationship is shown to exist between caps, floors, and... View Details

Keywords: Interest Rates