• Media type: E-Book
  • Title: The Game Changer : Regulatory Reform and Multiple Credit Ratings
  • Contributor: Huang, He [Author]; Svec, Jiri [Author]; Wu, Eliza [Author]
  • Published: [S.l.]: SSRN, [2021]
  • Extent: 1 Online-Ressource (35 p)
  • Language: English
  • Keywords: Financial regulation ; Dodd-Frank ; credit ratings ; corporate bonds
  • Origination:
  • Footnote: In: Journal of Banking and Finance
    Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 2021 erstellt
  • Description: This paper examines the change in the regulatory use of multiple credit ratings after the Dodd-Frank Act (Dodd-Frank). We find that post Dodd-Frank reform, firms are less likely to demand a third rating (typically from Fitch) for ratings near the high yield (HY) - investment grade (IG) boundary to support their new corporate bond issues. Third ratings also become less informative post Dodd-Frank, with a much weaker market impact on credit spreads for firms with S&P and Moody’s ratings on opposite sides of the HY-IG rating boundary. We provide new evidence on the effect of Dodd-Frank in curbing corporate borrowers’ strategic use of multiple credit ratings near this boundary
  • Access State: Open Access