Truthmatters
Diamond Member
- May 10, 2007
- 80,182
- 2,272
http://seekingalpha.com/article/64186-egan-jones-is-conflict-free-not-a-chance
This sort of thing is hardly unknown on the sell side. A handful of equity research shops seem to consistently write negative reports, not necessarily because they are objective, but rather (I believe) because some clients will pay them to generate negative views for a variety of reasons.
I am not saying that Egan-Jones’ ratings are driven by its largest clients. I simply don’t know. But I find it incredible that Sean Egan is so emphatic about how lily-white his investor-supported ratings model is compared to the issuer-supported model. No, Sean, it’s not!
What is more important to me is the quality of the research, and the rationale supporting a rating--be it from Egan-Jones, or Moody’s, or S&P. And from what I’ve seen of Sean Egan’s work, on that score Egan Jones does not measure up.
Good find BOO
This sort of thing is hardly unknown on the sell side. A handful of equity research shops seem to consistently write negative reports, not necessarily because they are objective, but rather (I believe) because some clients will pay them to generate negative views for a variety of reasons.
I am not saying that Egan-Jones’ ratings are driven by its largest clients. I simply don’t know. But I find it incredible that Sean Egan is so emphatic about how lily-white his investor-supported ratings model is compared to the issuer-supported model. No, Sean, it’s not!
What is more important to me is the quality of the research, and the rationale supporting a rating--be it from Egan-Jones, or Moody’s, or S&P. And from what I’ve seen of Sean Egan’s work, on that score Egan Jones does not measure up.
Good find BOO