38 than in the US market. Log Transaction Value equals the natural logarithm of the tt rr aa nn sc ahcet iios na vpaal ur te) (mi . ee.a, st uh reefda ci en vmaillul ieo, na tUiSs sduoalnl acres, . oTf hteh emteoat anl C L O o f w h i c h t h e Transaction Value omfiltlhioenU. WS me aalrskoectosnatmropllefoirs $557 million and for the EU market sample $1,140 Rating Discrepancy, a dummy variable equal to 1 if at ii sf snuoatn. Fc ei naa lsl ye,cwu rei tcyo nr at rt eodl fboyr tMi mo oe dbyy’ sa rdedcienigv et hdeacdoinf fter roel nvta rr iaatbi nl eg f r o m S & P a n d 0 Year of Issuance, which equals the year of tranche issuance and ranges from 1997 to 2015. In our regression, we control for issuer fixed effects (Issuer Dummy), an encoded dummy variable for each unique issuer for use as a parameter in our issuer fixedeffects (I.F.E.) regressions. 2.4 Results Ians sTi ag bn leeds b2y. 2CtRo A2s. 5a, twt he et et si mt teh eo fdies gs ur eaen tcoe wa nhdi cihd ei nnvt ei fsyt ot hr se rseelcyuorni t yt hdeecsri eg dn i ftarcattoi nr sg, beyond credit ratings, with a significant impact on the funding cost. In Table 2.2 we report the estimates of the OLS test of Equation (2.1), where we regress the Spread at issuance on the Credit Rating for the US and EU market for CLO tranches it shseu Ee dU farno dm U1S9 m9 7a rt koe 2t . 0T1h5e. Irne sTual bt sl erse l2a. t3e dt ot o2 . o5uwr eU Sb rme aakr kdeot ws anmopul re saarme ps hl eo wf onr irne sPual tnse fl os rAt hoef TE aUbml e as r2k.e3t .t oI n2T. 5a .b Il ne 2P.a3n, ewl se Bd uopf l iTcaabt el e tsh2e . 3r etgor e2s. 5s i ownes pi nr eTsaebnlte o2u. 2r but here we split our sample between the EU market and US market. In Table 2.4, ww eh ertehpeera ct rtehdei ta nr aatl iynsgi ss ohfaTv ae bal ed 2i f .f3e,r be nu tt hi me rpea wc t eocnr ef ua nt ed fi on ug rc-ot ismt feoirndt ei frfvear lesnttot itme set pi sesrui eo rdss .t oI nt eTsatbwl eh2e .t5h, ewr ec rberdeiat kr adtoi nwgns tahr ee spar mi c epdl e dbi faf seer de not nl y tbhye imn vaer skteot r ss haacrreo sosf isstsaunedrasr dw iftohr veaarcyhi nyge amr ai nr koeut rs hs aa rme ps .l eI n. FTi anba ll el y,2i.n6 , Twa be lees2t i. m7 awt ee tt ehset ltehvee li mo fpraactti nogf rating standards over time on the funding cost at issue.
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