SEC considers investment ranking
The Securities and Exchange Commission is exploring whether credit-rating agencies that rate security or bond investments should also be required to rank how risky they are. Host Tess Vigeland talks to corporate law professor Eric Talley.
Logos of rating agencies Moody's, Fitch Ratings, and Standard & Poor's (Marketplace)
More on Investing, Wall Street
Tess Vigeland: You've heard us talk before about the credit-rating companies Standard and Poors, Moody's and Fitch. Investors rely on their ratings to detemine if a security or bond is worth buying. Well the Securities and Exchange Commission, the SEC, is exploring, among other things, whether those ratings should also come with a ranking about how risky the investment is. That way maybe the entire world wouldn't be so quick to buy into things like structured investment vehicles and collateralized debt obligations.
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