DISCUSSION.

Professor Katz has opened a neglected area of study in the pricing processes of the securities markets with what is, on the whole, a very estimable first effort. The rash of bond reclassifications in recent years found us with little or no knowledge of their effects, particularly with respect to yields. In this regard Katz's paper is a needed and welcome one. It may also be that, as his paper says, investigation will reveal something of bond market efficiency, though this is much more problematic and conjectural than the more narrowly framed problem of repercussions on yield of rating change. [ABSTRACT FROM AUTHOR]