Academics cast harsh light on composition of S&P Index | Financial Times
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Academics cast harsh light on composition of S&P Index | Financial Times
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Academics cast harsh light on composition of S&P Index | Financial Times
Report alleging companies 'curry favour' by buying debt ratings called 'flawed' by benchmark compiler.
For some listed companies, gaining membership of a major stock index is akin to joining an exclusive club, recognition for years of hard work. But a trio of academics this week came up with a hypothesis on another way to get in: a short-cut that involves hard cash.
It is an industry worth more than $4bn a year, according to Burton-Taylor International Consulting, and S&P's 25 per cent market share puts it marginally ahead of MSCI and FTSE Russell. For S&P Global, the indices business is just 13 per cent of its revenues; credit ratings account for half.
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