Vivian van Breemen

62 differ in both markets. Figure 2.1(a) shows that rating standards loosened in the US market until the start of the global financial crisis and became significantly toivgehrt et irma ef t ewri t2h0t0h8e. eI nx ctehpet iEoUn omf a2r0k1e 0t , , raast isnhgo ws t na ni nd aFridg su rt ee n2d. 1e(db t)o. b e m o r e s t a b l e It nh eTiamb pl ea 2c t. 7o, nwt eh ep fruens edni nt gt hc oe srteagtr iessssui eo .nI friensvuel st st oorfs tpheer cr ae ti vi ne gt hs et avnadr ai ar tdi os na ni nd rsaht ionwg st ot a lnodoasredl ys , rt ahteend sCt rLi Oc tsl ywr iatthe dt hCeL Os asms he oaucltdu ahla vr ea tlionwg . e Wr cer eadgiat i ns pcr oe ma dpsacroe mt hpea rUe dS ma nadr kdei ftf e( Pr eannceel sB. )I nwciot hn ttrhaes tEwUi tmh aorukre te x( pP ea cnteal t iBo)na, ni nd coobl us me rnv e1 f oa fs cPi anna et il ns gA raens du l Bt s, we find rating standards highly significant with a negative sign at the 1% level fcoors tbiont hc ams ea rt hk ee tCs .L TOhi iss i sms eu ae nd si nt htai mt iensvoe fs tl oo rws edr e(mh iagnhde ra) cl or ewdei rt r(ahtiignhge sr t) afnudnadridnsg. Looking at the magnitude of the impact in column (1), we see in the US market a coefficient of -40.08 (t-stat=-63.96), which is substantially larger than -11.65 (t-stat=-3.34) for the EU market. We find similar results for the triple A sample in ca on ldu mE Un sm( a3r)kaent dd e( 4m) a, Tn adblloew2e. 7r . pTrheims isuumg gseisnt ss itthuaatt oi onn as voefr laogoes iennvi ensgt oc rr se di ni t trhaet iUn gS standards, and in the US drastically more so than in the EU market. 2.5 Conclusions and Policy Implications IHnovwe setvoerrs, itnh et hdei vUeSr gaenndc ien bt he tewEeUe nr etlhy ec ot wn soi dme raar bk el yt so ni s csrterdi ki ti nr ga .t iFnigr ss ti, nt hper i rc ei nl iga nCcLeO iss. si nt rvoens tgoerrs aanl sdo mt aokree oc tohnesri sst ee cnut roi tvye rd et ismi gen icnh at hr ae cUt eSr itsht ai cns ibne yt ho en dE Uc r emdai tr kr ea tt .i nSgesc oi nntdo, cc oo ns ts ifdoer r Ca tLi oOn t, rsauncchh ea ss , t ar al tnhcohueg hc omu notr ea nsdo Ci nL Ot hdee aUl Ss itzhea, nw ihne nt hdee Et eUr mmi na irnkge tf. uTnhdiirndg, our results show that after the global financial crisis the reliance on credit ratings

RkJQdWJsaXNoZXIy MTk4NDMw