Case report
2026
Market Knows Best: The Not So Hidden Risks of Private Ratings
We implement a new methodology to measure credit rating inflation that separates default risk from liquidity risk, using private letter ratings (PLRs)—ratings disclosed only to the paying investor. After a proposed capital charge reform, the most affected life insurers drastically increased PLR usage, raising regulator...
A. Drexler, Andy Polacek
· 0 citations