26 Abstract Wf a cet oi nr sv ebset yi goant de ct hr eed ei tx treant itn gt os iwn hdi ceht e irnmv iensitnogr st hree l fyu no dn i nc gr ecdoi ts t r faot ri ncgosl l aa nt edr aol ti zheedr loan obligations (CLOs) tranches in the period 1997-2015. We find significant differences between the United States (US) and European Union (EU) markets. In the US., we find a much higher and more consistent degree of reliance on credit ratings and other factors in pricing CLOs over time compared to the EU market. Finally, we find that investors in both markets reduce funding costs when rating standards loosened. The regulatory implications are discussed. Keywords: credit ratings, collateralized loan obligations, regulations, structured finance. JEL Classifications: G12, G24, G28, G32, L11.
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