On the efficiency of the corporate bond market and the rating agencies: Evidence from the israeli bond market
On the efficiency of the corporate bond market and the rating agencies: Evidence from the israeli bond market
In this research I have used bonds data from the Israeli financial market, in order to establish to what extent the Israeli credit market is efficiently rated by both existing rating agencies (Maalot and Midrug). Results show that the bond market does refer to ratings as a measurement of risk, however, further investigating have proven that it was not the entire risk involved in the investment process. The results of this research suggests that a better rating process should be adopted perhaps b