We examine rating behaviour after the introduction of new regulations regarding Credit Rating Agencies (CRAs) in the European securitisation market. Employing a large sample of 12,469 ABS tranches issued between 1998 and 2018, we examine the information content of yield spreads of ABS at the...

In the wake of the near economic melt-down, Congress and the Securities and Exchange Commission (“SEC”) is discussing and proposing drastic changes to the regulatory structure that governs CRAs. This article attempts to further these discussions and proposals by proposing a handicapping...