“When the National Association of Insurance Commissioners published a report last year that found smaller rating agencies had assigned more generous scores to private credit investments than larger ones did, KBRA criticised it as ‘statistically unsound’. The NAIC ultimately withdrew it.”

“Insurers affiliated with the private capital groups use those investment-grade credit ratings to trim the capital they are required to have to back their long-term obligations to retirees.”

“Private letter ratings are not disclosed publicly, but can be used to determine capital requirements.”

“Some of the world’s biggest asset managers, including Blackstone and Apollo, are now among the most frequent users of ratings from firms beyond the big three.”

Reading your excellent book about PATCO now

“Within the next few weeks, a few will call in sick. Then the flight delays will cascade,” [Reich] envisioned. “At that point, pressure will suddenly mount on the White House and Republicans in Congress to end it.”

“Marc Rowan, chief executive officer of Apollo Global Management, the private capital manager that owns life insurer Athene, shot back: ‘Colm is just wrong.’”

If the mustard’s on the floor, your client is walking out that door.

Yeah, but you gotta admit, Miami condos are definitely safer … until they burn down due to shoddy non-union contractors and corrupt building inspectors, or fall into the sea thanks to rising sea levels.

If only there was something US regulators could do to avert a crisis. #NAIC