Investors are continuing to back rating agencies, despite a continuing barrage of criticism from top European Union officials over their alleged role in exacerbating the sovereign debt crisis.
Finance chiefs of European Member States and pan-continental organisations, including EU Commissioner Michel Barnier, have called for limits on the powers of ratings agencies to downgrade debts amid concerns that they are intensifying Europe's debt crisis.
The data monitor found that short interest in Moody's -- which downgraded Ireland's sovereign debt to junk status yesterday -- is at 9 per cent of all shares. The figures show that the number of Moody's shares out on loan to short sellers has been steadily dropping, despite an increase in the number made available by investors. Similarly, Fitch, which has also come under fire from Brussels, has seen little interest from short sellers, Data Explorers said, although a note from the data monitor this morning added that some large institutional investors were reducing their holdings in the company.
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