29 ot hf i Cs LgOr etartaenr cehxetse nt ht aonf ii nn vv ee ss tt oo rr sr edloi ainnc tehoe nE cUr emd ai tr kr ae tt i. nAglss oi s, omuor rree cs uo nl t ss i ss theonwt ot vh ea rt tainmde EtUh ai nn vi ens tt oh res EcUa nmbaer keextp. lNa ienxetd, wb ey ci )o bn us isdi ne re si sf tchyecsl ees di ii f)f et hr eenicme sp abcett wo feiesns uUeSr sf iinz ae nocri a il i ci )r ics hi sa, nt hg ee sr ei lni arnactei nogn sctraenddi ta rr da tsi.nWg ser ef imn da i nt headt mt hoer ye odrol. eFs si rsstta, balfet ei rn tt hh ee US but decreased significantly in the EU market. Second, funding cost required bi ny t ihnev eUsSt odros ni no tt mh ea Ek eU smu cahr kdei tf f ae rr ee ndtiifaf et iroenn. tTbhai sr de d, oounr irsessuuel tr sssi zheo, ww thhi al et ii nn vv ee ss tt oo rr ss dmeomreansod ianlothweeUrSfutnhdaninignctohset EfoUr mCLaOrksewt.hen CRAs loosen their rating standards, To the best of our knowledge, this paper is the first to compare investors in the Ur aSt i anng ds Ei nU pCrLi cOi nmg aCr kLeOts waitt hi srseusep. e Oc tutro stthued ye x ct eonntt rtiob uwt ehsi c ht ot hae yr erceel ny t o bn ocdrye doi tf l(istee er aet.ug r. , eMoanr qcur ee ds i&t rPaitni nt og, s2a0n2d0 ;cYr ae nd gi t estparle. ,a2d0s 2i 0n ) t, ha en ds ttroutcht ue rl ei tde rfai nt ua rnec eo nmcarrekdei tt rating standards (see e.g. Alp, 2013; Cafarelli, 2020). Our results are relevant t(od ipveorl igciynmg )alkeegriss liant itvheef rUaSmaenwdo rEkUs soeneckri endgi tt oraitmi npgrso. ve t h e e f fe c t ive n e s s o f t h e i r Tt hhee rreelsetv oa nf tt hl ei t ecrhaatputreer ri es l oa tregda ntioz ecdr eadsi tf orlal ot iwn gs .s .S eS cetcitoi on n2 .22. 3c odnetsaci rnisb ea sr eovuire wC LoOf t2r. a5 npcrhoev iddaet sa aa nd di s cSue sc st ii oo nn , 2c .o4npc rl ue ss ieonnt sa nt hde s reet ss uol ut st op fo ol i uc yr iemmppl ii rc iactai ol nt ess. t s . S e c t i o n 2.2 Literature Review The academic literature on structured products has benefited greatly from amarked increase both in theoretical and empirical studies of market reliance on Chapter 2 - How much do Investors Rely on Credit Ratings
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