79 mortgage-backed securities segment of the structured finance market, where tt hh ee ynuusme bt he re onfutmr abnecrhoefs ttroa nmcehaessuarse ccoommpplleexxiittyy iansdti hc aetyo ar.nHa el yezte aml . o( 2r t0g1a6g)e a- bl saoc kues de sa encdu rdi et iael s s. tPraurct ti uc ur el a ri ntcor eCaLsOe s t, hFea hcaodmapnl ed xLi tayu roaf (C2L0O1s7, )a es ml aprhg ae sr i zdee at hl sa tr ed pe rael ssei znet more loans, underlying collateral and geographic dispersions and an increase in the number of tranches makes risk and potential return more difficult. Jiang et al. (2018) use the number of tranches and tranche size to measure deal complexity. 3.2.4 Hypotheses Op outre natsisael s rsoml ee not f ocfo tmh pe l el ixtietrya tlue raed so nu sc rt eod fi ot rrma tui nl agt er ias kn ua nmdb ei nr opfa rht yi cpuol at hr e tshees rt he ge ai rddeian gt htahte cCoLmOpml eaxri tkye ti s. Wl i ke esleyetko t iontcersetatshee tsheehcyhpaont hc ee soefsd. Ti shaeg rset ae rmt ienngt paomi notni gs Ca sRsAe ss .s Imf se on, t CoRf At hsews ai lml per coovmi dpe l de xi f pf erroednut cpt r. eTlhi me di ni saar gy roe pe imn ieonnt sbteot wt heee ins sCuReAr sf omr i gt hhet sdti ismp lualya trea ti si ns gu ecrast et or i nd gi s bp el ahya rvai ot irn. gWsehfoopl lpoiwn gt hb ee hma ev ti oh ro da no ldo/goyr i mn i at iya lcl ay uussee Cd RbAys Ht oe ewt hael r. e( 2t 0h 1e 2e)m, apni rdi cf aulr tt ehsetr f eolra rbaotri na tge sdhionpHp ei negt i as l c. o( 2n0d1u6c t)eadnbdyi nl oJoi akni negt aatl .w( h2 e0t1h8e)r, tohnee scerceudri itt yr ai tsi nr ag t ae rdebmy oornee l oi krebl yy ttow ho acvree dbiet erna tsi nh og papgeedn ccioe ms , pi . ae r. , edde at ol s dt ehaalts ht ahvaet have two credit ratings.22 The direct effect of rating shopping is not visible, as issuers are not obliged to disclose all ratings of preliminary assessments of CRAs (Sangiorgi & Spatt, 2017). We therefore formulate our first hypothesis as follows: 22t h uI ns trhe idsufcrianmg et wh eo rnku, mHbe eer t oaf l .c r( 2e d0 i1t 6r, apt i. n1 g) ,s f oo rb seexravme dp leem, aprigrui cea ltlhya, ta n“ sdhaotp tpheer ss ammaey tci emnes or er douucti npge stshi emliisktei cl i hr aotoi nd gosf, or abtsi ne rgvseodr cCr Re dAi’ st ri na tt ienngt si odni staogcraeteemr eonr tms ”a. It tc hi s tihme proa rt itna gn,t ctaonmn oe tn bt ieo no bt hs eart vtehde bi netceanutsi oe nt hoef raeni si sns ou eorb tl oi g sa ht ioopn ftoor rcerpeodri tt trhatein(pgr, etolimmiantacrhyt)hceoontthaectrsrbaetitnwge. en CRAs, nor the information of the CRAs on how they looked at or engineered the Chapter 3 - Security Design and Credit Rating Risk
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