Off and on since 2013, Egan-Jones Ratings Company has sought certification from the SEC for ratings of ABS. Last week, the SEC denied the latest application from the rating service.

Sylvain Raynes, the new lead of the structured finance practice at Egan-Jones Ratings Company, warned that MBS and ABS investors are losing money if they’re relying on fairly static ratings from other firms.

The SEC is seeking more information from Egan-Jones Ratings on its application for authority to rate ABS and government securities.

S&P has seen several proposals for ABS similar to the $188 million deal Ledn issued in February tied to loans secured by bitcoin holdings.

The $562.5 million offering is linked to a pool of loans with a total unpaid principal balance of $5.0 billion.

Kroll Bond Ratings Agency placed a 2024 transaction issued by Kobalt Music on watch for a potential downgrade because of the flagging performance of the underlying assets.

Ledn issues ABS backed by Bitcoin loans; fire at SFVegas prompts shift in exhibit hall; banks seek enhanced capital relief for CRTs; Fitch launches group for private ratings; Upstart sells auto loans to Bayview.

The ABS is backed by 5,441 fixed-rate balloon loans tied to bitcoin holdings. The loans have an outstanding balance of $199.1 million. There are concerns about rising LTV ratios as the value of bitcoin drops.

In a first-of-its kind ruling, a bankruptcy court ordered a 2021 whole-business securitization from Hooters Restaurant Group to be cancelled and essentially re-issued.

WaFd Bank replacing whole-loan holdings with MBS; solar ABS on downgrade watch; dv01 expands into credit card ABS.