OK, it seems to me that a lower rating that suggests even a slightly higher risk will require a higher return to match the increased risk. I am no expert but it seems to me that a bond worth less results in a higher return.
Let me ask you and all others reading this a question.
Moody’s, S&P Caved In to Ratings Pressure From Goldman, UBS Over Mortgages
Is S&P too big to be held liable? No one cares that it appears there is proof that S&P was one of the “key enablers of the financial meltdown” that led to this mess?
No one cares that S&P could well be the Arthur Andersen of the bond ratings industry?
Personally their holier-than-thou attitude is wholly annoying!