Thanks to an analysis of structural changes in abnormal spread series, we stress specific investors' reactions to rating actions. These reactions are much more usual when the issues are in sterlings than in euros. When reacting in the euro area, investors mainly react after banks' and public...

The relation that may exist between rating announcements and bond spreads is unclear, despite the fact that many event studies have been dedicated to that problem. Several of them cast a doubt upon the utility and the function of credit rating agencies on the bond markets, which are usually...