Ratings Quality Over the Business Cycle

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Credit Ratings and the Evolution of the Mortgage-Backed Securities Market (2011, unknown): “corporate bond market, a small number of large issuers of MBS brought many deals to the ratings agencies and thus had substantial bargaining power over them.(2) Theoretical research (e.”
Estimating the Costs of Issuer-Paid Credit Ratings (2013, unknown): “4 The model of Bar-Isaac and Shapiro (2013) similarly suggests countercyclicality of rating accuracy; CRAs are more likely to inflate ratings when income from fees is especially high and default probabilities are low.”
Corporate Governance: What’s Special About Banks? (2013, background): “These conflicts of interests can be particularly pronounced during boom periods, when there is strong demand for banking assets (Bar-Isaac & Shapiro 2013).”
Are All Ratings Created Equal? The Impact of Issuer Size on the Pricing of Mortgage-Backed Securities (2012, unknown): “Perverse incentives of the rating agencies worsen during market booms, when the short-term benefits of additional rating business net of potential reputational costs are the highest (e.g., Bar-Isaac and Shapiro (2010), Bolton, Freixas, and Shapiro (2012)).”