UBS chair warns of ‘looming systemic risk’ from private credit ratings
Colm Kelleher says insurers are shopping for grades as banks did before 2008 financial crisis
Colm Kelleher says insurers are shopping for grades as banks did before 2008 financial crisis

Rising holdings of the asset class could lead to problems when the next downturn comes

A firm should think carefully about which risks are worthwhile and tolerable to their clients

Warning that banks may find it difficult to manage risks comes a day after HSBC disclosed $400mn hit

Inflated private ratings could mask credit risks and leave insurance companies undercapitalised

Lack of transparency of debt popular with US insurers increases risk of ‘fire sales’, report says

Rating agency says surging market’s opacity and illiquidity could pose risks to the industry