Griffin, John M.; Nickerson, Jordan; Tang, Dragon Yongjun - In: Review of Financial Studies 26 (2013) 9, pp. 2270-2310
We examine whether "rating shopping" or "rating catering" is a more accurate characterization of rating agency interactions regarding collateralized debt obligations (CDOs). Although investors paid a premium for dual ratings, AAA CDO tranches rated by both Moody's and S&P defaulted more...