Egan-Jones Rating Company - EJR

AAA

DEFINITION of 'Egan-Jones Rating Company - EJR'

A well-known rating agency that evaluates bonds of all kinds. Egan-Jones Rating Company (EJR) rates corporate debt of all kinds, from high-grade issues to high-yield debt. EJR is funded entirely by investors and not issuers, which prevents possible conflicts of interest when rating debt.

INVESTOPEDIA EXPLAINS 'Egan-Jones Rating Company - EJR'

EJR was founded in 1995 and was granted NRSRO status by the SEC in 2007. Sean Egan spoke to Congress regarding this matter in 2008, saying that issuers of complex securities were contributing to the conflicts by "shopping" for a rating among the various ratings agencies. He encouraged legislators to promote investor-funded agencies to combat this type of practice.

RELATED TERMS
  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  3. Credit Report

    A detailed report of an individual's credit history prepared ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has ...
  5. Weighted Average Credit Rating

    The weighted average of all the bond credit ratings in a bond ...
  6. Bond

    A debt investment in which an investor loans money to an entity ...
Related Articles
  1. Bonds & Fixed Income

    Junk Bonds: Everything You Need To Know

    Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.
  2. Bonds & Fixed Income

    Are High-Yield Bonds Too Risky?

    Despite their reputation, the debt securities known as "junk bonds" may actually reduce risk in your portfolio.
  3. Bonds & Fixed Income

    Corporate Bonds: An Introduction To Credit Risk

    Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
  4. Personal Finance

    The Debt Ratings Debate

    Lack of competition and potential conflicts of interest have called the value of these ratings into question.
  5. Bonds & Fixed Income

    Why Bad Bonds Get Good Ratings

    Credit ratings are not the only tool to rely on when assessing bonds. Find out why they sometimes fall short.
  6. Home & Auto

    The Bear On Bonds

    Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
  7. Mutual Funds & ETFs

    Who Is To Blame For The Subprime Crisis?

    From lenders to buyers to hedge funds, it appears everyone has blood on their hands.
  8. Economics

    The Fed's Impact On Emerging Markets

    Higher US interest rates could make it more expensive for emerging market borrowers to service their debt commitments.
  9. Mutual Funds & ETFs

    Is HYG a Smart High Yield Corporate Bond Play?

    High yield is in high demand, but whether or not you should invest in iShares HYG ETF will depend heavily on your risk appetite.
  10. Credit & Loans

    Understanding Credit Risk

    Credit risk arises whenever a borrower is expecting to use future cash flows to pay a current debt.

You May Also Like

Hot Definitions
  1. Loan-To-Value Ratio - LTV Ratio

    A lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage.
  2. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  3. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  4. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  5. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  6. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
Trading Center