Calpers plan for rating firms: let the investors vote

Californian pensions giant offers a new twist on the business models of ratings agencies

Wednesday 13 October 2010 at 14:01

Calpers is offering a new twist on bond raters' business models: put ratings to an investor vote, and divvy up revenues accordingly.

The California Public Employees' Retirement System, the nation's largest public pension fund and a major bond buyer, says bond issuers' payments to rating firms should be pooled and then distributed periodically based on investor votes on the accuracy of ratings.