Rating organizations have regularly upgraded or downgraded the ratings assigned to mortgage pools as the repayment and d

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Rating organizations have regularly upgraded or downgraded the
ratings assigned to mortgage pools as the repayment and default
rates have differed from expected. According to Brigham and
Ehrhardt (2018), securitization allows investors to reduce their
information costs by relying on the rating agency. However, because
of the complexity of how pools may be structured, the new mortgage
products that can be securitized, and the potential for unstable
economic conditions, past performance of other pools may not
accurately reflect the risk inherent in new securitizations. What
do you see as wrong with this scenario of upgrading and downgrading
securities based on a structured pool of assets to appeal to
different risk, diversification, and income taste?