31 In the rating of other credit products such as corporate bonds, there is an eBxetceknesri v&e Mb oi ldbyooufr lni t, e2r0a 1t u1r; eCoanf atrheel l qi , u2a0l i2t 0y )o. fBrlautmi neg es tt aanl .d(a1r 9d 9s 8( s) eseh eo. wg . ,, uA sl pi n, g2 0S1&3P; bd oe cnldi nrea ti ni n gc rse, dt hi ta tq ut hael i tnyuomf bceorr poof rcarteeddi te br at ,t ibnugt droawt hnegrr abdy eCs Ri sA sn oatp pc al yui snegdmboyr ae sAtlrpi n( g2 e0n1t3 r) apt ri no gv i sdteasn md aorrdes ei vni dt he en cUeSt hma at rokveetr. At hger epeeirni og dw1i t9h8 5B -l 2u 0m0e2 ectr ae ld. i (t 1r9a 9t i 8n )g, sgtraanddearradtsinvgasr.ied, with divergent patterns for investment-grade and speculative- These findings suggest that there are factors outside of the bond structure or cc oo lnl as itsetreanl t i tws ei tl fh t Fhaabt oazf zf ei cat ncdr eVdiint kr a(t2i n0 g1s0 )a nadn dt hMe aprrqi uc iensg aonfds ePci nu troi t i(e2s0, 2w0h)i cwh hios found that investors look beyond the credit rating in determining the funding cost of structured finance securities. Our assessment of the literature is that rating quality can be impacted by (1) business cycles (see e.g., Bar-Isaac & S2 h0 a1p2i)r, oa, n2d0 1( 33); Dc hi lal yn g&e sMi änhrl amt ianngn s, t2a0n1d6a)r d( 2s )( si seseu ee .rg .s, i Az el p(, s2e 0e 1e3. g; . C, Ha fea reet l al i l, . ,22002101) ., Twhhies t hper or vi ni dveess tfourrst ht ae kr ems oe tciuvraittiyo nd efsoirg no uf ar c st ot ur sd yi ,n ti no awchc oi cuhn twwe hseene kp rt ioc ienxga CmLi On es adti ftf he reetni mt i aet eo fi ni s stuhaen pc er .i cWi neg boufi l dC LuOpso nb et ht we seee ns t ubduisei sn easnsd ci yncvleesst, i gi sast ue ei rf i snivzees taonrds wi n hoeut hr ea rn ar al yt si ni sg bs eatrwe eiemn pCaLc Ot esdi sbsyu ec dh ai nn gt eh se iUnS raant idn gE Us ttaon sdtaurddys .dWi f fee rdeinf fceerse ni nt i taht ee ut ensdt et rhl ey i dn eg gfraecet ot ros wwhhi icchh ihnavvees ttohres grreel ya toe ns t tihme praact ti nogns tahses ipgrni ce idn gb yo fCCRLAOs saat nt di mt oe of issuance. Chapter 2 - How much do Investors Rely on Credit Ratings
RkJQdWJsaXNoZXIy MTk4NDMw