A practice used by rating agencies whereby they automatically reduce structured financial collateral ratings made by another agency or agencies, without having assessed and rated themselves such instruments. Notching is mainly applied by rating agencies when they need to rate investment vehicles such as collateralized debt obligations (CDOs) that contain structured finance collaterals rated by a different rating agency. The practice has detractors who suggest it's a way to undermine competition.
Related information about notching:
- Notching - Wikipedia, the free encyclopedia
Notching is a metal-cutting process used on sheetmetal or thin barstock, sometimes on angle sections or tube. A shearing or punching process is used in a press ...
- Notching - definition of Notching by the Free Online Dictionary ...
b. Such a cut used for keeping a record. 2. A narrow pass between mountains. 3. Informal A level or degree: a notch or two higher in quality. tr.v. notched ...
- notching - Idioms and phrases - The Free Dictionary
notching use in phrases and idioms. Idioms with notching. notching in expressions. Definitions by the largest Idiom Dictionary.
- Notching Definition | Investopedia
Notching arises when collateral, such as mortgage backed securities (MBS), and other asset backed securities (ABS) are included within investment vehicles ...
- Notching metals :: metal fabricating process
Notching is a shearing process during which a metal scrap piece is removed from the outside edge of a metal workpiece. Notching is typically a manually ...
- EUROMAC NOTCHING MACHINE - YouTube
Jul 23, 2008 ... EUROMAC FIXED & VARIABLE ANGLE NOTCHER.
- Notching
Notching is a disturbance of opposite polarity to the normal voltage waveform ( which is subtracted from the normal waveform) lasting for less than one-half cycle .
- What is the definition of notching?
A shearing operation that removes a section from the outer ...