A re-examination of rating shopping and catering using post-crisis data on CDOs

- We replicate Griffin et al. (2013) using post-crisis CDO data.
- Single-rated AAA tranches are much more common after the crisis.
- Dual-rated AAA tranches have lower yield spreads than single-rated ones.
- Dual-rated AAA tranches are also downgraded less than single-rated ones.
- Results indicate continued rating shopping but diminished rating catering.

We re-examine rating shopping and catering among CDOs by replicating a portion of Griffin et al. (2013) using post-crisis data. Our results are consistent with continued rating shopping and diminished rating catering behavior after the great financial crisis.