SEC is looking to revise disclosure requirements to boost issuance of publicly-registered deals. Investors see some positives in private placements, which might not be easy to replicate in the public market.
The sentiment among investors at the ABS East conference this week was overwhelmingly positive. Attendance at the event hit a record, and investor demand for MBS and ABS is expected to remain strong into 2026, buoyed by anticipated interest rate cuts by the Fed.
Fed still working toward a Treasury-only balance sheet; BlackRock, Hoplon units partner to bring in new ABS issuers; ABS East set for record attendance; CREFC adjusts plans for DC symposium.
Residuals from securitizations can generate close to 20% in returns though the asset class carries significant risks. Nonbanks are showing a strong appetite for the asset, but there is limited liquidity.
Economists find that the ability of fintechs to incorporate alternative data into their underwriting allows them to expand their borrower base while at the same time reducing defaults and delinquencies.
In September, FINRA received approval from the SEC for a plan to require one-minute reporting of many MBS and ABS trades. Now the self-regulatory organization is scuttling implementation, citing concerns from industry participants.
Rating services disagree over the validity of a National Association of Insurance Commissioners report that highlighted differences in private ratings based on the size of the ratings provider.
Reps. Ann Wagner, R-MO, and Brad Sherman, D-CA, raised concerns of the securitization industry with Federal Reserve Chair Jerome Powell. They aim to influence a proposal to implement changes to capital requirements for large banks.
TRACE trade data on non-agency CMOs isn’t released until 18 months after the transaction, leaving customers at the mercy of dealers when it comes to pricing information.
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