28 uefnfedcetrisvteannedsisnogf lceoguisldlatiinont.urn inform policymakers seeking to improve the Wc r ee di ni tv reas tt ii ng ga tse atshsei gdneegdr ebeyt oC RwAhsi cihn i tnhteh ep rUi cSi na ng dt hEeU CmL aOr ka et tt ihnev et ismt oer so rf ei lsys uo anntchee. Using data of CLO tranches that are originated and sold between 1997 and 2015, we first test the extent to which investors rely on CLO credit ratings by Moody’s aq nu do /t eodr mS &a Pr g, ians aetviisdseunacnecde . bWy et hael s roe el axtai omni snhei pi n bv ee st wt oer erne lci ar endc ei t orna t oi nt hg se ra fnadc t tohr es beyond credit ratings that are specific to the CLO market, which we refer to as “i ns ev ce us troi trys dper si ci ge nt ”h feai rc tionrvse. sI tnmt ehni st swi anyC, wL Oe sgoa ni n t ah ne ub an sdi es ros ft acnr eddi ni tg raast i tnog st hoer doeng tr he ee basis of other factors that influence their investment appetite. W“ s tee at dh ye -nb ocoomn s-ibduesrt -irfe cs ouvc ehr yl e” vpeel sr i oodf sroe bl i saenrcvee dc hi na nt hg ee dC LoOv emr atri mk eet ,, at nh dr owu ghhe t ht heer there are further differences to be observed in that regard between the US and tt hh ee bE uUsmi naersks ectysc, lae c(oBnasri-dI searaa ct i &o nSphraopmi r po ,t e2d0 1b3y ; rDa ti li lnyg&mMo ädhe ll ms baeninn,g2i0n1f l6u)e. nWc ee dt ebsyt wa nhde ft rheeqr ut ehne t pvaetrt seur ns si nof br es qe ruveendt ii sns tuheer sUiSn at nh de steh emEa Ur kde itfsf ,egr i vf oern l sa ur gg eg evsetri sounss si nmtahl el , literature that investors may vary their reliance on credit ratings, depending on tsht reutcyt pu er eodf fiisnsaunecret hr aetyi nagrse, ds teuadl iinegs wh ai vt he (f oHuenedt tahl .a, t2C0R1 A2 )s. mO ua tys ihdaev eo fvtahrei efdi etl hdeoi rf raantai nl ygs isst, awn ed at er ds ts wo hv ee rt ht ei mr ien v( sees et oer.sg .t, aAklep i, n2t0o 1a3c )c. oIunntthceh laans gt epsairnt roaf t oi nugr setma npdi raircdasl in pricing CLOs in the US and EU markets. Os uubrs traenstui al tl sl y sghr eoawt e rt heax tt e ni nt otnh ec r eUdSi t mr aat irnkgest , a so nt h eayv edreat ge er mi innvee tsht oe rfsu nrde il ny g tcoo sat
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