US Edition — The rulemaker that wants to be a rating agency

<p>Credit ratings are one of the foundations of modern credit markets — and the National Association of Insurance Commissioners wants in on the action.</p><p>Several months ago, the regulatory association announced plans to adjust the capital charges for insurance companies investing in CLO debt and equity, by developing an in-house rating methodology instead of relying on the big three agencies.</p><p>The plans were already controversial within the CLO industry. But in a recent update, the NAIC has expanded the scope of these new rules, sparking broader outrage from industry observers as well as <a href="https://9fin.com/news/15a3d448-8962-4486-9e8f-b40ba0c364f4">several Republicans</a> on the House Financial Services committee.</p><p>The NAIC says it’s looking to prevent “regulatory arbitrage”, but critics see the rules as a “land grab” for rating fees. For this week’s podcast, Will Caiger-Smith sits down with US deputy editor David Bell to unpack the controversy.</p>