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Egan Jones Builds Investor Confidence With Timely Warnings and Reliable Ratings
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Global Banking and Finance Review
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Before the 2008 financial collapse fully evolved, Egan Jones Ratings had already warned investors about the growing dangers posed by certain issuers. Egan-Jones took an out-of-consensus stance and got it right.
It wasn’t the first time. In the years leading up to that crisis, the firm also raised early concerns about companies such as IndyMac, Countrywide, WorldCom, and Enron.
Those warnings came well before those companies failed, establishing Egan-Jones as a firm that recognized risk early and stood by its analysis even when others disagreed.
How the Company Earned Investor Trust
Egan-Jones was founded in 1995 on the idea that investors deserved credit ratings that were faster, more affordable, and more reflective of actual risk.
To monitor its performance over time, it developed a tracking tool called “Hits and Misses,” which compares its credit ratings to actual market outcomes.
In 2008, the firm’s “hits” reached 95 percent, right at the height of the global financial crisis. That same year, Fortune magazine named Sean Egan the top analyst who foresaw the economic collapse.
Today, the firm continues to work with institutional clients who depend on its ratings to make decisions across a wide range of asset types.
It is registered as a Nationally Recognized Statistical Rating Organization in the United States for select types of instruments. It holds certifications from both the European Securities and Markets Authority and the U.K. Financial Conduct Authority. The National Association of Insurance Commissioners also accepts its ratings for use in insurance capital planning.
As part of its commitment to expanding access, the firm introduced a unique business model offering no-cost indicative ratings, which let clients preview its analysis before committing to a full rating.
Its mission is to create tools the team would want to use themselves, prioritizing accuracy, speed, usability, affordability, and a positive customer experience.
“We seek to develop more efficient capital markets that deliver better information and greater returns for investors,” the company shared.
The firm also supports investors through timely commentary and educational content, including regular insights published in industry outlets.
Tech That Solves Problems Without Taking Over
Even as the company has grown, it has chosen to keep key responsibilities in-house while refining the systems that drive its daily operations. Egan-Jones works with RiskSpan to evaluate and refine its credit models. It utilizes MyLogIQ for managing proxy data and has partnered with KPMG to work toward SOC 2 certification—a widely recognized standard for data security and privacy.
While technology improves delivery and speed, the firm has made it clear that its decision-making remains human-led.
“Yes, AI will be used,” the firm said, “but workflows and models will mature, and AI will integrate into those—rather than ratings or proxy decisions being handled purely by talking to a chatbot like ChatGPT.”
The company stays current with market trends by attending industry events, maintaining close relationships with strategic partners, reading relevant industry publications, and actively soliciting feedback from its clients. Its updates are deliberate, intended to elevate the everyday experience of its users.
A Workplace That Puts Thought Into Every Hire
Egan Jones employs approximately 60 people. All employees have the option to work remotely, and the company hosts in-person gatherings each year to keep everyone connected.
The firm seeks both integrity and skill when hiring, with new employees learning through open questions and dialogue rather than formal training programs.
“We seek to hire people with good hearts and minds who believe in our mission and find meaning and duty in their work,” the company said.
Staff members receive competitive salaries, health benefits, paid time off, and professional development support.
Every member of the team is expected to keep growing, with the understanding that no one has a monopoly on intelligence or insight. The firm uses tools like Airtable and Cursor to help track performance, but it relies just as much on regular feedback and personal accountability.
Lessons That Led to Better Systems
Like many organizations operating in regulated industries, Egan-Jones has faced challenges that called for internal changes.
“We take a principles-based approach to fix issues,” the firm shared.
This has included collaborating with RiskSpan, MyLogIQ, and KPMG, with each relationship aimed at enhancing the reliability of existing systems.
Today, Egan-Jones continues to invest in its new hires. This is part of its long-term strategy to strengthen client relationships and deliver more targeted guidance.
Addressing Client Needs in Proxy Voting
Egan Jones entered the proxy advisory space in 2002, helping investors cast votes with a focus on long-term financial performance. These decisions often involve electing board members, approving executive compensation, and weighing in on governance matters that shape the company's direction.
Egan-Jones introduced the Wealth-Focused Policy, which was designed to help investors who want their votes to be based on business outcomes rather than ideology or advocacy.
In 2024, Vanguard added it as an option for select fundholders, followed by BlackRock. State Street also selected Egan-Jones as a proxy service provider, which expanded the company’s influence across the three largest asset managers.
At the same time, the firm believes that investors should be able to choose the voting approach that best aligns with their goals, whether that means prioritizing ESG factors (Egan-Jones offers an ESG policy), long-term financial outcomes, or specific values.
Additional options include Taft-Hartley and Catholic proxy policies, giving clients flexibility in how they cast their votes. The firm provides vote recommendations, execution, and reporting for institutions seeking practical, results-driven guidance.
Staying Focused on Client Satisfaction Over Scale
Egan Jones does not define success by the number of products it offers or the pace of its growth. Instead, it measures progress by the quality of its analysis, the confidence of its clients, and the long-term usefulness of the information it provides.
Nearly three decades after opening, the company continues to deliver on that promise, consistently with the reliability that investors have come to expect.
A credit rating is an assessment of the creditworthiness of a borrower, indicating the likelihood of default on debt obligations. It helps investors evaluate the risk associated with lending money.
Risk management involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.
Investment management is the professional management of various securities and assets to meet specified investment goals for the benefit of investors.
A financial crisis is a situation in which the value of financial institutions or assets drops rapidly, often leading to widespread economic disruption.
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