Did You Know...

...that according to the buy-side, investor relations can have as much as a 25% impact on a company’s valuation? In our most recent study of the buy-side, we uncovered that portfolio managers and buy-side analysts attribute a premium of 10% of a company’s valuation to good investor communications and a discount of 15% to bad investor communications.

The US Buy-Side Speaks Out on Credit Rating Agencies

Recently there have been hints that another major credit rating agency will downgrade US debt by the end of the year. While S&P’s decision to go this route last August generated a firestorm of controversy, the US buy-side is now largely on board with the decision, suggesting that the next agency to downgrade will not face the same amount of acrimony (nor, that US equity markets will be overly disturbed).

This does not, however, imply that the S&P’s of the world have recovered their former prestige and respect among US institutional investors. Over half the US buy-side currently gives Fitch, Moody’s and S&P generally low scores in terms of their overall credibility.