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. Quantitative research is done only when the person is having profound knowledge on the subject or to analyze the phenomenon which is under research. As to analyze the causes of financial crisis, quantitative methods are used to analyze secondary data on interest rates, housing prices, loan performances. According to Silverman (2000), qualitative data analysis involves gathering qualitative data and analyzing qualitative data. Qualitative data is the data collected from documents such as reports, emails, transcripts etc. And quantitative analysis is interpreting the quantitative data by understanding it and explaining it. To analyze the rating methodologies and rating methodologies updates of rating agencies we use qualitative analysis.

To be more precise, among the three main rating agencies who are the market holders, I have chosen Moody's as they were the first to start up with rating the bonds and were regarded more reliable in the ratings provided. Moody's don't hold a first place in market when it comes to revenue but their existence in the field is high compared to any other rating agencies in the market. I believe in “experience is the profit to the company”. Though the models used in the rating agencies were identical with minor changes, the information I could find and reliable was on Moody's which motivated me to analyse the models used in Moody's which again drained the financial sector.

Taking into consideration on the models used by these Moody's on rating the residential mortgage securities, it becomes necessary for me to relay on the models they have followed over the years and hence find the changes made and its impact on the ratings. Hence the methodology followed here is qualitative methods.

To find the impact of updates of moody's rating methodologies on ratings; quantitative analysis is done on issuance and default rate.

3.3 Data collection

According to Kinnear & Taylor (1996), data collection is very important step in any research. The type of data used reflects on quality of the research. To achieve the goal of report, Secondary data has been collected from different sources such as 1. Research papers, 2. Academic journals, 3. Working papers of banks, 4. Internet. Secondary data has been used in this report to reach research objective. Secondary data is the data that has been be published by other authors and organizations(Kothari, 2005).

Data has been collected from various government websites for the purpose of analysis of financial crisis. Data on federal interest rates has been collected from Federal Reserve statistical reserve website. 30 year fixed mortgage rate has been collected from Freddie Mac company website. Housing prices index (median), real housing price index has been collected from US Department of Housing & Urban Development website. Foreclosure, delinquency and loan performance data has been collected from US Government Accountability Office (GAO) website.

Moody's investor service (Moody`s) has been selected for the analysis of role of rating agencies in the financial crisis. Moody`s has been selected because moody's has been in the business of rating right from the starting and ratings 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。